According to sources, speaking at a seminar organized by the NetShell Group titled “Reshaping Pakistan’s Economic Direction”, Finance Minister Muhammad Aurangzeb said that Pakistan’s previously issued international bonds were in U.S. dollars, euros, or Islamic sukuk. He explained that issuing bonds in Chinese currency (RMB), the world’s second-largest and deep capital market, and then converting them into dollars would provide a 2.5 percent profitable difference.
The Finance Minister also mentioned that the country’s debt-to-GDP ratio has decreased from 75 percent to 70 percent, and the average maturity of debts has been extended to over four years, reducing the cost of refinancing and immediate debt pressures. He added that last year, the government saved approximately PKR 850 billion in interest payments on debts, and if everything goes well, a similar amount is expected to be saved this year. These savings are not solely due to a reduction in policy rates but are also influenced by other factors.
Aurangzeb revealed that the government has handed over 24 state-owned enterprises to the Privatization Commission. Referring to a recent report, he disclosed that these institutions were causing an annual loss of nearly PKR one trillion to the government, representing a huge wastage of national resources that could be better utilized elsewhere.
He stated that institutions such as PWD, Utility Stores Corporation, and PASSCO are being shut down due to heavy subsidies and the embedded corruption within these subsidies. He emphasized that the treasury’s main losses were due to these entities, which is why these reforms are being implemented.
Regarding structural reforms, Muhammad Aurangzeb described tariff reforms as a significant step, which include reductions in regulatory duty, customs duty, and additional customs duty. These reforms aim to lower the cost of raw materials and semi-finished goods. He noted that such reforms are being undertaken for the first time in 78 years. He added that Pakistani industries have long benefited from government protection, which has hindered their global competitiveness and export-oriented mindset.
The Finance Minister highlighted that over the past 18 months, 20 new foreign investors have entered Pakistan, including Google, Aramco, GKN, Turkish Petroleum, BYD, Cherry Auto, Abu Dhabi Ports, Nova Minerals, Mashreq Digital, and Samsung. He acknowledged that some companies have exited the country due to heavy taxes, high energy costs, and financial expenses, but companies like Nestle and Unilever, which adapted by sourcing local raw materials, are now earning good profits and exporting. He emphasized that other companies need to revisit their business models.
Regarding the capital market, Aurangzeb noted that the Pakistan Stock Exchange has expanded, with 135,000 new investors added in the last 18 months. Around 280 new companies have been registered, with nine IPOs in the previous fiscal year and 16 more underway.
He added that Pakistan has nearly 40 million crypto users, with trading volumes in the billions of dollars, and stressed the need to bring this activity under a regulated and legal framework. He also highlighted that Pakistan ranks third globally in the number of freelancers, and by acquiring skills in modern technologies like blockchain, freelancers currently earning $12–$14 per hour could potentially earn $50–$250 per hour.
Finally, he warned that for Pakistan to become a $3 trillion economy by 2047, the population growth rate must be reduced from the current 2.55 percent.
