Govt engages global leaders on fiscal and infrastructure reforms

November 18, 2025 (MLN):  The govt presented its economic reform progress and investment potential to an international delegation, highlighting macroeconomic stabilization, structural reforms, and plans to re-enter global capital markets.

The delegation, organized by Dialog, a global leadership network founded by Peter Thiel and Auren Hoffman, included senior figures such as Simon Stevens of the UK House of Lords, Yasmin Green, CEO of Jigsaw at Google, Fatima Kardar of Xbox-Microsoft, and Himanshu Gulati, Norwegian MP.

The briefing was led by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, who outlined Pakistan’s recent economic performance and reform initiatives, said a press release issued.

It was highlighted that Pakistan’s macroeconomic consolidation over the past 18 months, noting ratings upgrades by Fitch, S&P, and Moody’s affiliates, alongside the successful second review of the IMF Extended Fund Facility and the Climate Resilience Program.

Improvements in geopolitical alignment and strengthened relationships with the United States, China, and Saudi Arabia were emphasized, alongside the launch of CPEC Phase 2.0, focused on business-to-business investment, export-oriented industrial zones, and joint ventures.

The government outlined ongoing reforms in taxation, energy, federal spending, and state-owned enterprises.

Measures include broadening the tax base, integrating AI-driven monitoring, improving compliance, and bringing under-taxed sectors such as real estate, agriculture, and wholesale/retail into the formal system.

Pension reforms are underway with a transition to contributory schemes for new employees.

Energy sector reforms include governance improvements in distribution companies, loss-reduction efforts, and increased private-sector involvement.

The government aims to maintain competitive tariffs and ensure long-term sustainability in the power sector.

During discussions, officials addressed Pakistan’s tariff negotiations with the U.S., debt trajectory, banking regulation, and links between infrastructure investment under CPEC and growth.

Plans to re-enter international capital markets, including potential Panda bond issuance, were also discussed.

Pakistan’s demographic advantage and ongoing reforms in mining, agriculture, IT, AI, pharmaceuticals, and manufacturing were cited as key drivers for private-sector-led growth and foreign investment.

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