Pakistan’s economy on path to sustainable growth says FM

August 18, 2025 (MLN): Pakistan’s economy has entered a phase of stability and is moving toward sustainable growth, with reforms focused on effective use of resources and long-term progress.

The federal finance minister Muhammad Aurangzeb, while inaugurating the Job and Education Expo at the Expo Centre Karachi organised by the Pakistan Hindu Council, said more than 120 stalls were set up by institutions and companies to provide opportunities for students.

He noted that both public and private institutions were present, though the absence of the corporate sector was felt.

The minister expressed that the corporate sector must step forward and interest rates should not be treated as the sole agenda.

He said Pakistan must look beyond banks to promote working capital by including capital markets, while shifting the debt capital market to the Pakistan Stock Exchange for greater efficiency.

On the energy sector, he said circular debt in power is on the decline, with three distribution companies to be privatized soon, while work is also under way to address the longstanding burden of gas sector debt.

Clarifying the government’s role in monetary policy, he explained that interest rates are decided by the State Bank of Pakistan, while the exchange rate would remain market-driven.

Pakistan already has funding available, he said, but the priority is to ensure effective utilization.

He praised Mustafa Kamal’s initiatives on population control and stressed the need for women’s participation in the economy as a decisive factor in reducing poverty, confirming that discussions with the World Bank to support such programmes are ongoing.

The minister said the IMF review mission under the 37-month programme would soon arrive in Pakistan and expressed optimism that by 2047 the country could achieve the status of a developed nation. He also pointed to Pakistan’s strong anti–money laundering laws that enabled its removal from the FATF grey list, voicing confidence that the country would remain off it.

Speaking on the damage caused by recent rains in Khyber Pakhtunkhwa, he said his immediate priority was relief and rehabilitation, while it was too early to assess the scale of losses. Asked about traders’ demand for a new province, he refrained from a direct response.

The minister emphasized that there is no shortcut to growth, which must be sustainable, with the government’s role being to provide an enabling environment. Public-private partnerships, he said, are proving effective, and Pakistan must move forward in line with advances in artificial intelligence.

Despite economic ups and downs talent remains intact and stability has been achieved. With positive signals from international rating agencies and the State Bank’s management of monetary policy, he expressed confidence that the country’s economic outlook would continue to improve.

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