Senator Aurangzeb pitches Pakistan's investment case at J.P. Morgan Conference

September 18, 2026 (MLN): Pakistan is shifting its economic focus from macroeconomic stabilization toward investment, capital formation, exports and private sector-led growth, with GDP growth having recovered to 3.7 % in FY26 and the fiscal deficit narrowing to 2.6 % of GDP, a multi-year low, as the country posted a primary surplus for the third consecutive year.

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb made the remarks while addressing a fireside chat titled "Pakistan: External Shocks Remain Manageable" at the J.P. Morgan Emerging and Frontier Markets Opportunities Conference in London, where the Pakistani delegation held one-on-one meetings and a full investor session with 55 global investment funds over the course of a day, according to a press release issued.

Governor State Bank of Pakistan Jameel Ahmad and Mr. Amin Khowaja, CEO and Country Head of J.P. Morgan Pakistan, were also present during the engagements.

Outlining the government's economic direction, the Finance Minister laid out six key priorities: bringing permanence to macroeconomic stability and strengthening fiscal and external shock-absorbing capacity; moving from stabilization to sustainable, productivity- and export-driven growth; staying the course on structural reforms; shifting from aid to trade and investment; expanding access to finance; and positioning Pakistan for the new economy, including digitalization, blockchain and Web 3.0.

Senator Aurangzeb said the country's overriding task over the past three years had been to restore macroeconomic stability and rebuild credibility, citing progress in fiscal consolidation, external sector stability, inflation control, debt management and international market access.

He said the objective now was to make this stability durable and build a growth model driven by investment, productivity, exports and private sector activity rather than short-term, consumption-led expansion.

Governor Jameel Ahmad highlighted the strengthening of Pakistan's external position, pointing to improved foreign exchange reserves, better reserve quality, rising remittances and strengthening external-sector fundamentals, along with the growing contribution of Roshan Digital Account flows and progress on containing inflation, which he said had reinforced the foundations for sustainable growth and investment.

On the sovereign debt front, the finance minister said active liability management, extended domestic debt maturities and reduced refinancing risks  alongside fiscal consolidation  were strengthening the sovereign balance sheet.

He said Pakistan had re-established access to international capital markets through diversified instruments, pointing to the inaugural Panda Bond issuance and the subsequent record $3 billion dual-tranche Eurobond, both of which drew strong investor demand, adding that the goal was not merely to raise financing but to sustain regular market access, diversify the investor base and improve financing terms over time.

The finance minister said Pakistan carried significant potential for deeper capital formation, with the government working to strengthen equity and corporate debt markets, broaden investor participation, lift IPO activity and improve market infrastructure, while greater foreign participation and the development of Islamic finance and Sukuk markets could open further channels for long-term investment.

He said privatization was being pursued as part of a broader restructuring of the state's role in commercial activity, with progress across PIA, DISCOs, financial institutions, other SOEs and airport operations, alongside a National Private Equity Framework being developed to mobilize institutional capital and strengthen the private equity and venture capital ecosystem.

He said access to finance was also being widened across SMEs, agriculture and housing to help translate macroeconomic stability into greater credit, investment and productive activity, stressing that public balance sheets alone could not finance Pakistan's next phase of growth and that private capital would need to play a larger role.

Citing the country's large domestic market, young workforce and strategic location, he said Pakistan's investment case rested on the combination of reform and scale, with reforms in tax administration, tariff rationalization, energy, SOEs and the financial sector aimed at lifting productivity and shifting the economy toward exports, technology, manufacturing, minerals, agriculture and value-added services.

On external engagement, the finance minister said Pakistan was moving decisively away from dependence on aid toward stronger trade and investment flows, while stressing the need to deepen both goods and services trade and attract long-term investment through mutually beneficial partnerships.

 He said the country's young workforce and expanding digital ecosystem positioned it to benefit from emerging technologies, particularly blockchain and Web 3.0, opening new avenues for investment and growth.

He said Pakistan's investment case was no longer just about overcoming immediate economic pressures but about the reform and re-rating potential that lay ahead, reaffirming the government's commitment to fiscal discipline, external sustainability and reform momentum while creating greater space for domestic and international private capital.

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