Economic reforms, transformation: Aurangzeb briefs leading global investors

ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that Pakistan is not just reforming, it is transforming, and “it is open for business and for investors seeking impact, scale, and certainty- Pakistan offers all three.”

He made this statement during a strategic meeting held with a group of leading global investors in London, including Oliver Williams, Emerging Markets Fixed Income Portfolio Manager at Amundi, and Maud Le Moine of Lion’s Head Global Partners, to discuss Pakistan’s economic outlook, reform agenda, and future investment prospects, Said a release issued here on Friday.

The Finance Minister provided a comprehensive overview of Pakistan’s macroeconomic recovery, citing key achievements including a primary budget surplus of PKR 3.6 trillion, a current account surplus, inflation reduced to 0.3% (April 2025), and a drop in debt-to-GDP ratio from 75% to 65%.

These indicators, he noted, have not only stabilized the economy but have also led to improved sovereign credit ratings and renewed confidence from multilateral and bilateral partners.

In the discussion, the Minister emphasized that Pakistan is firmly staying the course on reforms, aiming to transition from a consumption-led to a sustainable, export- and productivity-led growth model. He highlighted new tax reforms aimed at bringing real estate, wholesale, retail, and agriculture sectors into the formal net, while ensuring end-to-end digitalization of the tax authority to minimize human discretion and reduce corruption.

Minister Aurangzeb outlined the government’s ambitious sectoral diversification strategy, citing the upcoming minerals conference and the landmark copper agreement expected to contribute USD 2.8 billion annually to exports by 2028.

He also drew attention to the thriving digital economy, where Pakistan is now the third-largest global player in IT freelancing, and reiterated the central role of digital transformation in enabling inclusive and equitable growth.

He further briefed attendees on Pakistan’s plan to issue a Panda bond as part of its active debt management strategy, and on future steps under the Medium-Term Debt Management Strategy (MTDS). Discussions included the restructuring of state-owned enterprises (Wave 5), ongoing pension reforms, and the preparation for ESG bond issuance in FY2026.

Amundi, one of the world’s top 10 asset managers with over €2 trillion in assets under management, reaffirmed its interest in Pakistan’s sovereign instruments and ESG-aligned investments.

Oliver Williams welcomed the clarity and credibility of Pakistan’s macroeconomic direction and expressed a strong interest in the country’s upcoming bond issuance plans.