Govt intensifies private sector role in economic growth

February 12, 2026 (MLN): Pakistan intensified the importance of protecting and expanding private sector exposure, reducing sovereign risk, and boosting private sector participation through innovative local-currency financing mechanisms as part of its broader push for economic stability and investment-led growth.

The meeting was held at the Finance Division where Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met a international investors’ delegation comprising representatives from the International Finance Corporation (IFC), British International Investment (BII), Asian Development Bank (ADB), and Baltoro Capital, according to a press release issued.

Discussions focused on mobilizing investment and strengthening collaboration in support of Pakistan’s reform agenda, with the finance minister acknowledging IFC and ADB as long-standing development partners and welcoming their enhanced engagement in private sector financing initiatives.

Senator Muhammad Aurangzeb said Pakistan has made significant progress in restoring macroeconomic stability over the past 18 months, citing improved currency stability and foreign exchange reserves projected to cover nearly three months of imports by year-end.

He noted continued government efforts to narrow the investment deficit and provide a more stable and predictable economic environment.

Talks also covered trade liberalization and tariff rationalization aimed at enhancing competitiveness and dismantling protectionist barriers, with the minister stating that Pakistan aims to follow growth paths similar to successful Southeast Asian economies.

He highlighted strong performance in the services sector, with exports expected to sustain upward momentum.

Energy sector reforms, tax policy improvements, and measures to boost tax administration efficiency were also reviewed.

The minister reiterated the government’s commitment to broadening the tax base and aligning fiscal policy with growth objectives, adding that Pakistan is meeting its debt repayments smoothly while exploring access to international debt markets through programs such as the inaugural Panda Bond and the Global Medium-Term Note framework.

Emphasizing domestic investor confidence, Senator Muhammad Aurangzeb pointed to successful transactions  including the privatization of Pakistan International Airlines through a local consortium  as positive signals for global investors.

Delegation representatives reaffirmed their support for Pakistan’s reform and investment agenda, underscoring the importance of private sector participation, private equity investment, and continued cooperation to improve the business environment.

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