Pakistan shifts from aid to trade, investment to strengthen global ties

October 15, 2026 (MLN): Pakistan is shifting its focus from aid to trade and investment while strengthening economic ties with Gulf countries, the United States, China, and other longstanding partners, Finance Minister Senator Muhammad Aurangzeb said in an interview with News Asia.

Pakistan received $41.6bn in remittances during the previous fiscal year, with inflows expected to reach $44bn in the current fiscal year, Muhammad Aurangzeb said.

He said Pakistan values the support and continued cooperation of its partners during difficult times and seeks to strengthen trade and economic relations with all bilateral partners, particularly Gulf countries, which remain important for both trade and remittances.

Pakistan is pursuing relations with China and the United States simultaneously rather than treating either country as an alternative to the other, he said.

China remains a longstanding partner, with the China-Pakistan Economic Corridor (CPEC) serving as an important part of the Belt and Road Initiative.

The first phase of CPEC focused on infrastructure development, including roads, ports, and power plants, while the second phase aims to generate economic benefits from existing infrastructure, expand business opportunities, promote cooperation between businesses, and encourage joint investment projects.

Some joint projects with China are also focused on producing goods for export, Muhammad Aurangzeb said.

Pakistan also seeks to expand economic relations with the United States by leveraging its leadership’s good ties with the US administration to advance economic cooperation, he added.

The growing fragmentation of global trade has increased the importance of cooperation among regions, prompting Pakistan to explore new opportunities with Gulf countries, Central Asian states, and ASEAN members.

Muhammad Aurangzeb said his visits to Malaysia and visits to Pakistan by the leadership of Malaysia and Indonesia had helped promote regional connectivity and cooperation.

A meeting with Thailand’s finance minister during his stay in the country would also provide an opportunity to strengthen regional economic cooperation.

Despite challenges in the current global environment, new trade opportunities are emerging, he said.

The United States is Pakistan’s largest trading partner, followed by the European Union. Pakistan aims to benefit from the potential of bilateral trade by strengthening ties with other regional trading blocs.

Expanding trade with regional markets and diversifying partnerships could help Pakistan manage the effects of uncertainty in global trade, Muhammad Aurangzeb said.

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