Aurangzeb invites global stakeholders to invest in priority sectors

DAVOS: In an exclusive article published as part of World Economic Forum Annual Meeting, Minister of Finance and Revenue Senator Muhammad Aurangzeb has invited the global stakeholders “to support Pakistan’s journey by investing in priority sectors such as agriculture, IT, renewable energy and pharma”.

In the article published on the WEF website on https://www.weforum.org/stories/2025/01/pakistan-economic-revival-sustainable-and-inclusive-growth/, the Minister highlights the transformative journey embarked upon by Pakistan in recent years towards economic stabilization and growth.

“Confronted with formidable challenges, we implemented decisive reforms to build a robust foundation for sustainable and inclusive development. Today, the results of these efforts are becoming evident, with the economy demonstrating resilience and renewed potential,” he says.

Further text of the article reads:

A series of necessary reforms: When I assumed office as finance minister in 2024, Pakistan faced severe fiscal and monetary pressures. Inflation had surged to 38 per cent, straining households and eroding purchasing power.

Foreign exchange reserves had dropped dangerously low, barely covering two weeks of essential imports like food and fuel. Industrial output had contracted by 10.3 per cent, and GDP growth had plummeted to 0.2 per cent. The compounded effects of Covid-19 and devastating floods causing over $30 billion in damages further tested our resilience.

Recognizing the gravity of the situation, we implemented a series of necessary reforms. These included stabilizing the exchange rate, tightening fiscal policies, and curbing inflation through targeted monetary interventions. With support from the IMF’s Extended Fund Facility (EFF) worth $7 billion, we initiated structural improvements in critical sectors such as energy and taxation.

Central to this effort was “Uraan Pakistan”, an economic transformation plan launched in 2024. This initiative aims to achieve sustainable, export-led six per cent GDP growth by 2028 through public-private partnerships, enhanced export competitiveness and optimized public finances. Priority sectors include agriculture, energy, textiles, pharmaceuticals and IT.

A pivotal component of Uraan Pakistan is our collaboration with the World Bank on a $20 billion initiative targeting health, education, poverty alleviation, investment and climate resilience. This transformative partnership addresses critical challenges such as child malnutrition, educational outcomes and clean energy adoption.

By integrating sustainability into our development framework, we are contributing to global efforts to achieve the United Nations Sustainable Development Goals (SDGs).

In July 2024, we introduced a reform-oriented budget with an ambitious goal of raising Rs13 trillion in revenue – a 40 per cent increase from the previous year. These reforms focused on broadening the tax base by targeting under-taxed sectors like agriculture, real estate and trade, while leveraging technology to enhance compliance and transparency. Modernising the Federal Board of Revenue (FBR) has been instrumental in streamlining tax administration.

Path to recovery: Today, Pakistan’s economy is on a path to recovery. Inflation has dropped to 4.1 per cent, and foreign exchange reserves now provide over two months of import coverage. Goods exports have risen by 7.1 per cent, and the IT sector has grown by an impressive 28 per cent year-on-year.

Pakistan’s global default risk has dropped by 93 per cent, signaling renewed faith in the country’s fiscal stability. Local and foreign investors, including global giants like Aramco, BYD and Samsung, are contributing to this economic revival, reflecting Pakistan’s potential as a lucrative investment hub.

Copyright Business Recorder, 2025