KARACHI: Finance Minister Muhammad Aurangzeb has said that Pakistan is beginning to see early signs of macroeconomic recovery, but sustainable economic growth will require bold and difficult decisions.
Addressing the members of Overseas Investors Chamber of Commerce and Industry (OICCI) here on Monday, he stressed that breaking the cycle of recurring economic instability demands a firm commitment to structural reforms and long-term policy consistency.
OICCI hosted Aurangzeb, for a high-level dialogue with senior leadership from major multinational companies operating in Pakistan.
Aurangzeb meets OICCI delegation, pledges continued support
During the session, Senator Aurangzeb shared encouraging signs of improving macroeconomic indicators and rising business confidence, as also reflected in the latest OICCI Business Confidence Survey and attributed the signs of economic recovery to the government’s concerted efforts, improved policy implementation, and the resilience demonstrated by key economic sectors.
He emphasized that while the momentum is positive, Pakistan must continue to stay the course on key structural reforms to achieve long-term economic stability. “We are witnessing early signs of macroeconomic recovery, but to break free from recurring cycles of instability, Pakistan must take bold and sometimes difficult decisions,” said Aurangzeb.
He added that the government is fully committed to supporting the business community by ensuring a transparent, predictable, and investment-friendly environment.
The finance minister responded to concerns raised by OICCI members, representing more than 200 of the leading foreign investors operating in Pakistan. He assured them of the government’s resolve to address policy challenges and unlock the country’s full investment potential.
With rising foreign investor confidence as depicted by OICCI survey insights, the finance minister urged investors to look into key high-potential sectors for investments, including Mining & Minerals, Agriculture, IT, Infrastructure, among others.
Aurangzeb reiterated the government’s commitment to fostering a business-friendly environment as a top priority. He also announced that efforts are underway to increase financing for Small and Medium-sized Enterprises (SMEs), recognizing their significant contribution to the economy and employment generation. This aligns with recent government statements on aiming to boost SME financing to 17 percent of private sector credit by 2028.
He further said that banks would have to play a role in the country’s economic development and banks have been requested to revive sick industrial units in the country in collaboration with the investors. The minister further stated that the government is actively working to strengthen the economy and significantly reduce its own expenditures.
OICCI President Yousaf Hussain acknowledged the government’s progress in stabilizing the economy and underscored the importance of strengthening institutions. “We welcome the improving macroeconomic indicators and renewed signs of stability,” said Yousaf Hussain. To convert this into sustained growth, we must strengthen our institutions, invest in professional capacity, and ensure consistent policymaking,“ he expressed.
OICCI Secretary General Abdul Aleem highlighted the need to boost Pakistan’s foreign direct investment levels, which remain below one percent of GDP. “We are encouraged by the government’s focus on simplifying the regulatory environment,” he said. “However, the recent exit of some major multinationals also highlights the need to reduce over-regulation and improve the overall investment climate.”
In conclusion, the Federal Minister extended his gratitude to OICCI for curating an event that stresses on macroeconomic elevation also stating that, “Economic reforms are absolutely critical, but having said that the existential issues that are ever pressing must be addressed as a whole.”
Copyright Business Recorder, 2025
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