Pakistan's economy is firmly on a stabilisation and growth trajectory, its finance minister asserted at the World Economic Forum Annual Meeting, pointing to stronger foreign-exchange reserves, accelerating GDP expansion and renewed capital-market activity as signs of macroeconomic resilience.
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, made the remarks during a bilateral meeting with Mohammed Aljadaan, Finance Minister of the Kingdom of Saudi Arabia. The discussion focused on Pakistan's economic progress and prospects for deepening longstanding financial ties between the two countries.
Mr Aurangzeb briefed his Saudi counterpart on key macroeconomic indicators. Foreign-exchange reserves have improved to provide import cover of roughly three months, reflecting greater external stability. He said investor confidence was strengthening, with sixteen initial public offerings currently in the pipeline after nine successful listings last year.
More than 120,000 new investors have entered the capital market, he noted, describing the trend as evidence of renewed faith in Pakistan's economic outlook. Interest rates have begun to decline, though he reaffirmed the independence of the State Bank of Pakistan in setting monetary policy.
Economic growth, he said, reached 3.1% last year and accelerated to 3.7% in the first quarter of the current fiscal year. The government remains committed to maintaining a sustainable current-account position alongside inclusive GDP expansion.
Remittances continue to underpin macroeconomic stability. Inflows are projected to exceed $41bn this year, up from $38bn previously. Expansion in IT services has also supported the external balance by bolstering services exports.
The finance minister thanked Saudi Arabia and its leadership for their continued support, underscoring what he termed a deep-rooted and time-tested relationship between the two countries. Mr Aljadaan shared positive impressions regarding Pakistan's recent economic developments.
Mr Aurangzeb also highlighted efforts to enhance foreign direct investment, particularly in minerals and mining, agriculture and other sectors with export potential and broad socioeconomic impact.
On privatisation, he said important transactions had recently been concluded, including investment from the United Arab Emirates in a digital venture and progress linked to Pakistan International Airlines. The government plans phased divestment of selected state-owned enterprises, including certain distribution companies and major airports in Islamabad, Lahore and Karachi.
The meeting concluded with both ministers reaffirming their commitment to strengthening economic cooperation, reflecting a shared intent to expand mutually beneficial financial relations as Pakistan seeks to consolidate stability and sustain its growth momentum.