Reform momentum can lead to ‘immense growth’: Aurangzeb

ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said Wednesday that Pakistan’s reform momentum and economic liberalisation could set the stage for an “East Asia moment”— a period of dynamic, export-driven expansion inspired by the experience of high-growth Asian economies such as Singapore.

In an interview with CNBC, the minister, who is currently in Washington DC to attend the 2025 World Bank Group-IMF Annual Meetings, discussed Pakistan’s ongoing IMF engagement and the country’s emerging export-led growth strategy.

He underlined the steady progress Pakistan has made toward macroeconomic stability over the past year, emphasising improvements across key indicators including currency stability, foreign exchange reserves, inflation, and policy rate alignment. He noted that the recent upgrades by all three major global rating agencies validate the country’s economic trajectory and reform agenda.

Aurangzeb stated that Pakistan’s current reform drive was rooted in a balanced approach that links macroeconomic stability with deep structural transformation.

“Macroeconomic stability and structural reforms must go hand in hand,” he said, citing ongoing efforts in taxation, energy, state-owned enterprise restructuring, and public finance as integral to this agenda.

Discussing the next phase of Pakistan’s growth journey, the Finance Minister said the government is determined to break away from the historical cycle of boom-and-bust by shifting from an import-led to an export-led growth model.

He highlighted the introduction of an ambitious tariff rationalization regime aimed at enhancing industrial competitiveness, reducing costs of raw materials and intermediate goods, and supporting the export sector.