Pakistan eyes sustainable growth with private sector lead, structural reforms

October 2, 2025 (MLN): The Pakistan Business Summit 2025, held at Serena Hotel, Peshawar, placed strong emphasis on private sector driven growth, structural reforms and economic competitiveness.

Organized under the patronage of the Governor of Khyber Pakhtunkhwa, the one-day forum was co-hosted by Nutshell Group and Al Baraka Bank (Pakistan) Limited, with the Overseas Investors Chamber of Commerce and Industry (OICCI) serving as Strategic Partner.

The event brought together policymakers, business leaders, and corporate executives to deliberate on Pakistan’s economic future.

Delivering the keynote address, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, stressed that the government’s role is to ensure macroeconomic stability, introduce structural reforms and provide a business-friendly ecosystem that enables private investment to lead growth.

He commended the organizers for holding a high-profile summit in Peshawar, showing the importance of engaging regional voices in the national economic dialogue.

Reviewing Pakistan’s recent progress, the Finance Minister pointed out that financing costs have declined following cuts in the policy rate, foreign exchange reserves have strengthened to cover nearly three months of imports, and the exchange rate has remained stable, boosting investor confidence.

He highlighted that Pakistan successfully repaid $500m in Eurobond obligations in September 2025 and is fully prepared for the upcoming $1.3bn repayment in April 2026.

In addition, remittances have shown strong growth, reaching $38bn last year and projected to rise to $41–43bn in the current fiscal year.

Aurangzeb reaffirmed the government’s commitment to comprehensive reforms, including the separation of tax policy from tax administration to restore investor confidence, restructuring of state-owned enterprises, privatization and rationalization of energy pricing.

He emphasized Pakistan’s export-led growth strategy and tariff reforms designed to lower duties on raw materials and intermediate goods.

He also revealed that Pakistan plans to introduce its first Panda Bond before the end of 2025, providing access to China’s deep capital markets.

The Minister noted that renewed investor confidence was evident through international engagements in Beijing, Riyadh, Washington and New York, which led to the signing of 24 joint venture agreements with Chinese companies.

Looking ahead, the Finance Minister warned that climate change and population growth are critical challenges for Pakistan’s sustainable development.

He stressed the urgency of tackling child stunting, learning poverty, and climate resilience, as these issues directly affect productivity and long-term economic competitiveness.

He further stressed the importance of effectively utilizing the Rs4.3tr national development budget to strengthen infrastructure, education, and healthcare, ensuring that economic reforms translate into tangible benefits for the public.

Concluding his remarks, Senator Aurangzeb emphasized that Pakistan’s sustainable recovery depends on private sector dynamism, competitiveness and close coordination between federal and provincial governments.

He reaffirmed the government’s resolve to steer the country toward resilience, global competitiveness, and inclusive growth, ensuring that reforms deliver measurable improvements in the lives of the people.

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