Pakistan, UK discuss reforms, growth and stability

June 16, 2026 (MLN): Pakistan and the United Kingdom reaffirmed their commitment to strengthening economic cooperation and sustaining engagement on reform, growth, and regional stability during a high-level meeting held in Islamabad between Finance Minister Senator Muhammad Aurangzeb and UK Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan Hamish Falconer.

The UK delegation, which also included British High Commissioner to Pakistan Jane Marriott, reviewed Pakistan’s macroeconomic outlook, ongoing structural reforms, fiscal priorities, and institutional modernization efforts alongside senior officials from the Finance Division.

The Finance Minister briefed the visiting delegation on the government’s economic reform agenda and outlined key priorities showed in the Federal Budget 2026–27, according to the press release.

He reiterated that policy efforts remain focused on maintaining macroeconomic stability, sustaining recovery momentum, accelerating structural reforms, and supporting inclusive and durable economic growth.

Discussions also covered Pakistan’s fiscal and institutional reform drive, including measures to improve revenue mobilization, strengthen tax compliance, reduce leakages, and modernize tax administration through digital invoicing, data integration, and centralized processing systems.

The Minister emphasized that these reforms are aimed at enhancing transparency, limiting discretionary intervention, and strengthening trust between taxpayers and state institutions.

Broader structural reforms were also reviewed, including privatization initiatives, rightsizing of public sector entities, improved public expenditure efficiency, expansion of digital governance, and strengthening of targeted social protection mechanisms.

Progress in technology-driven service delivery and more efficient resource allocation was also highlighted.

The meeting further touched on recent regional developments, including easing tensions following the US–Iran understanding, with the Finance Minister stressing Pakistan’s consistent stance in favour of dialogue, de-escalation, and peaceful resolution of conflicts.

He noted that regional stability remains closely linked to economic confidence, energy markets, supply chains, and broader growth prospects, while improved stability creates stronger conditions for investment and trade.

Mr. Hamish Falconer appreciated Pakistan’s commitment to reform and acknowledged the scope and seriousness of its ongoing economic transformation agenda, emphasizing the importance of sustained implementation, institutional strengthening, and improved competitiveness.

He reaffirmed the UK’s continued interest in expanding cooperation in areas of shared economic and institutional priorities.

Both sides agreed to maintain close engagement going forward, underscoring support for sustainable economic growth, governance improvement, and regional stability.

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