Pakistan expects over 4% growth, diversify financing with Panda bonds, Sukuk: Aurangzeb

Finance Minister Muhammad Aurangzeb told international investors that Pakistan expects economic growth of 4% or higher this fiscal year, while highlighting fiscal improvements and plans to diversify the country’s financing sources.

Aurangzeb participated in the Citi Macro Forum Session and briefed international investors on Pakistan’s economic outlook and reform priorities.

The finance minister highlighted continued macroeconomic stabilisation, three consecutive years of primary surpluses, a fiscal deficit at a 22-year low and strengthened foreign exchange buffers, while expressing optimism about growth reaching or exceeding 4% during the current fiscal year.

He outlined Pakistan’s capital market strategy, including further Panda bond issuances, Sukuk and a rupee-denominated, dollar-settled international bond, emphasising diversification of funding sources, lower borrowing costs and longer debt maturities.

IMF sees Pakistan’s inflation rising to 9.9% in 2027 as growth slows

He also discussed progress under the IMF programme, tax-base expansion, stronger enforcement and provincial coordination to sustain fiscal discipline.

Addressing the impact of the Middle East conflict, the finance minister outlined measures to maintain energy supplies and provide targeted relief to vulnerable groups within existing budgetary allocations. Discussions also covered climate resilience, disaster preparedness and effective utilisation of development financing.

He reaffirmed Pakistan’s commitment to sustained reforms and a transition from aid towards trade and investment in its partnerships with other countries.

In a separate meeting, Aurangzeb briefed investors on Pakistan’s economic progress at Standard Chartered Bank’s Sovereign Investor Roundtable.

He stressed sustained structural reforms, fiscal discipline, stronger tax enforcement and investment- and export-led growth beyond the IMF programme. Discussions covered stronger reserves, inflation and the external outlook, energy security, targeted relief and climate financing.

The finance minister reaffirmed the government’s commitment to further strengthening Pakistan’s sovereign credit standing.