Pakistan eyes 4% plus growth on reforms, fiscal discipline

October 14, 2026 (MLN): Pakistan is targeting economic growth of 4% or higher in the current fiscal year, supported by macroeconomic stabilization, fiscal discipline and continued structural reforms, Finance Minister Senator Muhammad Aurangzeb told international investors at the Citi Macro Forum Session.

The minister pointed to three consecutive years of primary budget surpluses, a fiscal deficit at its lowest level in 22 years and stronger foreign exchange buffers as signs of improving economic fundamentals.

He also outlined plans to diversify Pakistan’s financing sources through additional Panda bond issuances, Sukuk and a rupee-denominated, dollar-settled international bond. The strategy aims to reduce borrowing costs, extend debt maturities and broaden access to international capital markets.

Muhammad Aurangzeb discussed ongoing reforms under the International Monetary Fund (IMF) programme, focusing on broadening the tax base, strengthening enforcement and improving coordination with provincial governments to maintain fiscal discipline.

On the external front, he addressed the economic implications of the Middle East conflict and outlined measures to ensure uninterrupted energy supplies while providing targeted assistance to vulnerable segments within existing budgetary allocations.

The discussions also covered climate resilience, disaster preparedness and the effective utilization of development financing to support Pakistan’s long-term economic priorities.

The minister reaffirmed the government’s commitment to sustaining structural reforms and shifting Pakistan’s international economic partnerships from aid dependence towards greater trade and investment.

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