LONDON: Pakistan’s Finance Minister Muhammad Aurangzeb told global investors this week that the country’s economy has stabilized and is now ready to shift toward sustained, investment-led growth. Aurangzeb spoke at a fireside chat titled “Pakistan: External Shocks Remain Manageable” during the J.P. Morgan Emerging and Frontier Markets Opportunities Conference in London. The event drew significant interest from international investors, with 55 global investment funds meeting with the Pakistani delegation in one-on-one sessions and a group investor briefing over the course of a single day. J.P. Morgan Pakistan Chief Executive Officer and Country Head Amin Khowaja also attended.
Aurangzeb laid out six economic priorities for the government: reinforcing macroeconomic stability, shifting from stabilization to sustainable growth driven by investment and exports, continuing structural reforms, moving from reliance on foreign aid toward trade and investment, expanding financial access for individuals and communities, and preparing the country to participate in emerging digital sectors including blockchain and Web 3.0.
The minister said Pakistan has spent the past three years focused on restoring macroeconomic stability and rebuilding investor confidence. He cited progress on several fronts: GDP growth reached 3.7% in fiscal year 2026, the fiscal deficit narrowed to 2.6% of GDP — a multiyear low — and the country posted a primary surplus for a third straight year.State Bank of Pakistan Governor Jameel Ahmad, also present at the event, pointed to improvements in the country’s external position, including stronger foreign exchange reserves, increased remittance inflows and progress on containing inflation. He credited Roshan Digital Account inflows and financial sector reforms with helping strengthen the country’s economic fundamentals.Aurangzeb said the government’s goal now is to make that stability durable and use it as a foundation for a growth model driven more by investment, productivity and exports rather than consumption.
On debt management, the minister said Pakistan has extended domestic debt maturities and pursued active liability management to reduce refinancing risk, moves he said are strengthening the country’s sovereign balance sheet. He also pointed to the country’s return to international capital markets, including its first Panda Bond issuance and a subsequent $3 billion dual-tranche Eurobond sale, both of which drew strong investor demand. He said the broader goal is to maintain consistent market access, diversify Pakistan’s investor base and improve borrowing terms over time.
The finance minister said Pakistan is also working to deepen its capital markets by strengthening equity and corporate debt markets, increasing initial public offerings and improving market infrastructure, along with expanding Islamic finance and Sukuk markets to draw more foreign investment.
He outlined ongoing privatization efforts, including at Pakistan International Airlines, electricity distribution companies, financial institutions and airport operations, as part of a broader push to reduce the state’s role in commercial activity. He said the government is also developing a National Private Equity Framework aimed at attracting institutional capital into businesses and building out the country’s private equity and venture capital ecosystem.
Aurangzeb said access to financing is being expanded for small and medium-sized enterprises, agriculture and housing, adding that public funds alone cannot finance the country’s next phase of growth and that private capital will need to play a larger role.
He pointed to Pakistan’s large domestic market, young workforce and geographic location as core strengths, saying ongoing reforms in tax administration, tariffs, energy, state-owned enterprises and the financial sector are intended to boost productivity and shift the economy toward exports, technology, manufacturing, minerals, agriculture and value-added services.
On foreign economic relations, Aurangzeb said Pakistan is moving away from dependence on foreign aid and toward stronger trade and investment ties, while continuing to value its bilateral partnerships.He closed by saying Pakistan’s investment case has evolved beyond addressing short-term economic pressure, and now rests on the country’s longer-term reform and growth potential. He reaffirmed the government’s commitment to fiscal discipline, external sustainability and continued reform, while making more room for domestic and international private investment.
