Pakistan presents economic outlook to global investors in London

May 09, 2025 (MLN): Pakistan is not merely reforming but undergoing a full-scale transformation, Finance Minister Muhammad Aurangzeb affirmed during a high-level meeting with prominent global investors in London.

Highlighting the country's progress, he declared that Pakistan is open for business, offering investors the rare combination of impact, scale, and certainty.

The strategic session was attended by key investment figures including Oliver Williams, Emerging Markets Fixed Income Portfolio Manager at Amundi, and Maud Le Moine from Lion’s Head Global Partners.

Discussions focused on Pakistan’s economic trajectory, structural reform agenda, and evolving investment landscape.

During the engagement, Finance Minister Aurangzeb provided an in-depth overview of Pakistan’s macroeconomic recovery, underlining notable fiscal milestones.

These included a primary budget surplus of Rs3.6 trillion, a current account surplus, inflation easing to 0.3% in April 2025, and a significant reduction in the debt-to-GDP ratio from 75% to 65%.

These improvements, he noted, have helped stabilize the economy, enhanced sovereign credit ratings, and restored confidence among multilateral and bilateral partners.

He reiterated the government’s resolve to continue on the path of reform, with a strategic shift from consumption-led growth to a productivity-driven, export-oriented economic model.

New tax initiatives were also highlighted, aiming to integrate sectors like real estate, retail, wholesale, and agriculture into the formal economy, along with complete digitalization of the Federal Board of Revenue to curb discretion and corruption.

Minister Aurangzeb emphasized Pakistan’s sectoral diversification plan, referencing the upcoming international minerals conference and a key copper agreement projected to add $2.8 billion annually to exports by 2028.

He also spotlighted the digital economy as a major growth engine, noting Pakistan's position as the third-largest country in global IT freelancing and the broader goal of using digital transformation to ensure inclusive and equitable growth.

The meeting also covered strategic financial initiatives.

The Finance Minister detailed Pakistan’s intention to issue a Panda bond under its broader debt management strategy and shared updates on steps outlined in the Medium-Term Debt Management Strategy (MTDS).

He also reviewed ongoing reforms related to state-owned enterprise restructuring (Wave 5), pension system modernization, and preparations for an ESG bond issuance in fiscal year 2026.

Amundi, a global asset manager with over €2 trillion in assets under management, expressed renewed interest in Pakistan’s sovereign instruments and its ESG-aligned investment offerings.

Oliver Williams appreciated the policy clarity presented by Pakistan and signaled strong interest in the upcoming bond plans.

Lion’s Head Global Partners, an emerging market advisory firm, also extended targeted support for improving investor communication, enhancing engagement with credit rating agencies, and refining energy sector modeling.

The firm reiterated its willingness to support Pakistan's MTDS. The Finance Ministry welcomed the support, noting that any future engagement would comply with public procurement protocols.

Minister Aurangzeb also addressed various questions from investors, including concerns around sovereign water rights, stating unequivocally that suspension of Pakistan’s rights under water treaties was unacceptable.

He reaffirmed the government’s commitment to inclusive development, ensuring that social safety net programs like the Benazir Income Support Programme (BISP) would continue in the upcoming budget.

Concluding the session, the Minister outlined key opportunities for investors in sectors such as renewable energy, minerals, information technology, electric vehicles, and climate-resilient infrastructure.

He closed with a confident message: Pakistan’s economic recovery is no longer a forecast it is a market-recognized reality.

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