Khurram Schehzad terms private sector the engine of growth

August 08, 2026 (MLN): Pakistan has moved past macroeconomic stabilization and is now transitioning towards sustainable, private sector-led growth, underpinned by structural reforms, improving investor confidence and strengthening economic fundamentals.

Advisor to the Finance Minister Khurram Schehzad made these remarks, while addressing the Future of Finance Summit 2026 organized by the Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) at the Pearl Continental Hotel, Karachi, according to a press release issued.

The summit, where Khurram Schehzad attended as Guest of Honour, was attended by policymakers, financial experts, corporate and business leaders, investors, professionals and financial-sector stakeholders.

He said Pakistan's economy has undergone a significant turnaround over the past two to three years, moving from severe economic stress and external vulnerability towards macroeconomic stability and renewed expansion.

GDP growth has recovered to 3.7%, agriculture expanded by 2.89%, while Large-Scale Manufacturing grew by 6.1%, its strongest performance in around four years.

On fiscal and external stability, he said the fiscal deficit was contained to below 1% of GDP during the first nine months of FY26, while debt-to-GDP declined from around 75% to 68%.

The current account deficit narrowed to less than USD140mn from around USD17.5bn in 2022, while SBP foreign exchange reserves rose from around USD3bn in early 2023 to over USD18bn, supported by stronger organic foreign exchange inflows.

Referring to international validation of Pakistan's improving economic direction, the Advisor highlighted S&P Global Ratings' upgrade of Pakistan's sovereign rating to B with a Stable Outlook, the country's highest S&P rating in around 8-9 years, saying the upgrade reflects recognition of macroeconomic stabilization, fiscal consolidation, rebuilding of reserves and continued structural reforms.

He said reforms are progressing across privatization and SOEs, energy, taxation, tariffs, public debt management, pensions, rightsizing, digitization and access to finance, with their early impact increasingly visible: private sector credit growing nearly 15%, 11 IPOs, the highest in over two decades, and more than 43,000 new companies incorporated during FY26, alongside a growing PSX investor base and increasing participation by Gen Z.

Highlighting two major developments of the day, he welcomed the expansion of the Pakistan-Saudi Arabia defence partnership to include Türkiye, saying it further strengthens Pakistan's strategic partnerships and regional standing.

On the economic front, he pointed to strong investor interest in the privatization of Faisalabad Electric Supply Company (FESCO), with 12 domestic and international investors, including from Pakistan, Türkiye and China, showing interest, calling it an encouraging signal of confidence in Pakistan's investment and privatization outlook.

The Advisor said Budget FY27 marks an important policy shift towards supporting productive sectors, including industry, businesses, exporters, SMEs and agriculture, through measures aimed at lowering the cost of doing business, improving access to finance, strengthening competitiveness and enabling private sector-led growth.

He said improving confidence is also visible in Pakistan's broader investment landscape, with 79 foreign companies entering Pakistan during 2023-2025 compared with 19 exits, alongside increasing domestic investor participation, corporate activity and interest in major privatization transactions.

He also highlighted the strong performance of Sukuk as an increasingly attractive investment avenue and welcomed the growing participation of younger investors in Pakistan's capital markets.

Looking ahead, he said the government is developing a comprehensive industrial policy and medium-term tax policy to strengthen competitiveness and provide greater policy predictability for domestic and international investors.

Concluding his address, the Advisor said Pakistan's economic direction is increasingly clear: macroeconomic stability as the foundation, structural reforms as the enabler, and the private sector as the engine of sustainable growth, reaffirming the government's commitment to accelerating reforms, attracting domestic and foreign investment and enabling a private sector-led, investment-driven, export-oriented and sustainable growth model for Pakistan.

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