Senator Aurangzeb, Atlantic Council discuss Pakistan’s path to sustainable growth

October 16, 2026 (MLN): Finance Minister Senator Muhammad Aurangzeb has indicated that Pakistan’s economy is back on a growth path, with GDP expanding 3.7% in FY26 and a rate of around 4% expected in FY27, as industry and agriculture recover and the policy focus moves from stabilisation towards sustainable, investment- and export-led growth.

He made the remarks in conversation with Michael Kugelman of the Atlantic Council on the sidelines of the IMF-World Bank Annual Meetings 2026 in Bangkok, where he laid out the government’s reform agenda and the country’s growing role in global financial forums, said a press release issued.

The minister stressed that the aim is to build growth on investment and exports rather than consumption-driven expansion, as the economy moves past the stabilisation phase.

On revenue, he noted that tax collection has risen 40% over two fiscal years, lifting the tax-to-GDP ratio to about 10.3%, with digitalisation and structural reforms supporting the gains.

On the global front, he pointed out that Pakistan chairs the Borrowers’ Platform Governing Council and will take over the chairmanship of the G-24 on November 1, which he described as a boost to the country’s voice in international financial discussions.

He also highlighted Pakistan’s issuance of a Panda Bond and its return to the Eurobond market, adding that the government is working to diversify its financing sources and improve debt sustainability.

On the reform agenda, Senator Aurangzeb underlined that the government is moving ahead with the privatisation of power distribution companies and the outsourcing of airports, with private-sector and foreign investor interest growing.

On social protection, he stated that Rs838 billion has been allocated to the Benazir Income Support Programme (BISP), alongside targeted support for vulnerable households, with the government also focusing on jobs, education and skills.

He further explained that the government is expanding digital payments and financial inclusion and promoting AI adoption and technology skills to improve efficiency, transparency and economic opportunities.

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