Govt pledges course correction toward sustainable growth at The Future Summit

November 05, 2025 (MLN): Pakistan must shift from reactive policymaking to a forward-looking, reform-driven approach to stabilize the economy, restore investor confidence, and set a sustainable course for growth.

This was emphasized by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb while addressing the inaugural session of The Future Summit 9th Edition in Karachi, said a press release issued today.

He outlined the government’s commitment to structural reforms, fiscal discipline, and strategic partnerships to redefine the country’s economic direction.

Drawing from his recent engagements in Washington and Riyadh, the Minister said the global economy has shown greater resilience than anticipated, supported by structural reforms and enhanced private sector participation.

He highlighted the global shift toward reduced government roles and productivity-led, private sector–driven growth, as well as opportunities emerging from AI and technology-led innovation.

On the domestic front, he noted that Pakistan’s macroeconomic stability has been achieved and externally validated, citing upgraded ratings from major international agencies and the successful completion of the IMF’s second program review.

However, he cautioned that macro stability “is not an end in itself but a means to an end,” serving as the foundation for sustained investment and long-term growth.

He shared encouraging indicators such as a 14% increase in corporate profitability during the first nine months of 2025 and a rise in business confidence, with 73% of CEOs in the OICCI survey now viewing Pakistan as a viable investment destination, up from 61% previously.

The Minister highlighted a “confluence of favorable factors” including macro stability and geopolitical support that now position Pakistan to attract private sector–led trade and investment flows in priority sectors like minerals, IT, agriculture, pharmaceuticals, and the blue economy.

Welcoming Google’s decision to open an office in Pakistan and make the country a regional export and technology hub, he touched on the importance of equipping youth with digital and technical skills to tap into opportunities in AI, blockchain, and coding.

He emphasized that Pakistan has moved from design to implementation on structural reforms, citing progress in taxation, energy, SOEs, privatization, pension reforms, and debt management. He pointed to the deployment of AI-based monitoring and invoicing systems to curb tax leakages, the addition of 900,000 new tax filers, and World Bank recognition of Pakistan’s reform efforts.

The Minister reaffirmed the government’s privatization drive, noting the acquisition of a local bank by a UAE conglomerate and ongoing work on PIA and power distribution company transactions.

 Efforts are also underway to rightsize ministries, shut loss-making entities like Utility Stores Corporation and PASCO, and introduce a defined-contribution pension system for new government employees.

Speaking on the summit’s theme of “Course Correction,” he said Pakistan must sustain reforms while urgently addressing population growth and climate change, calling for a national sense of urgency to combat child stunting, learning poverty, and to fully utilize the $2 billion climate financing available under the World Bank’s Country Partnership Framework.

He concluded by reaffirming the government’s resolve to sustain economic reforms, strengthen resilience, and advance a reform agenda focused on long-term sustainability and human development.

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