ISLAMABAD: Pakistan and the US are deepening cooperation in energy, mining and technology sectors, with Islamabad planning an investor conference in Washington later this month, to draw American investment, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said.
“The sectors are very clear where we seek their investment and where we see a clear investment appetite,” Aurangzeb said in an interview with Bloomberg News. “With respect to the US, as of right now, you’ve just kick-started that process, he added.”
Aurangzeb said progress followed a new trade deal with the US, setting a 19% tariff, lower than regional peers and well below the tariff imposed on India.
Pakistan eyes American investment amid improved US ties: Bloomberg
He said the rate boosted Pakistan’s export competitiveness and helped it emerge from crisis. “The first thing was to get the trade equation out of the way, which it is now,” Aurangzeb said.
“From my perspective, every single industry in Pakistan has to have an export component, because it’s the only way we’re going to get out of this boom-and-bust cycle.”
According to Bloomberg, Pakistan pulled back from default in 2023 with IMF loans, stabilizing its economy. An IMF mission is now reviewing progress under the $7 billion program. Aurangzeb said the review was “largely on track” with benchmarks and that Pakistan paid off a USD500 million bond due Tuesday.
During a meeting last month with IMF Managing Director Kristalina Georgieva, Sharif said Pakistan was making steady progress on program targets.
S&P Global, Fitch and Moody’s upgraded Pakistan’s credit ratings this year, citing stronger finances and revenue gains as some of the reasons for the moves.
Investor appetite for its dollar bonds and equities has strengthened. Its bonds have given nearly 22 percent returns this year, while the benchmark stock index has gained 44 percent this year, both among the best performers in Asia. Bloomberg Economics estimates growth quickened to 3.4 percent year-on-year in the second quarter, with official data due next week. But recent heavy rains and floods that damaged crops pose a risk to the recovery.
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