Aurangzeb informs US officials of declining fiscal deficit, improved C/A

ISLAMABAD: John Mark Pommersheim, Deputy Assistant Secretary, Bureau of South and Central Asian Affairs, United States Department of State, accompanied by Natalie A. Baker, the US Chargé d’ Affaires to Pakistan, called on the Federal Minister for Finance and Revenue Muhammad Aurangzeb at the Finance Division on Wednesday.

The Finance Minister welcomed Pommersheim and appreciated the longstanding support and engagement of the United States in Pakistan’s economic development, particularly cooperation in multilateral financial frameworks.

Both sides exchanged views on Pakistan’s economic outlook, reform agenda, and avenues for enhancing bilateral economic cooperation.

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The Finance Minister briefed the visiting delegation on Pakistan’s macroeconomic stabilization and reform progress with focus on transitioning toward sustainable, export-led growth. He shared that the fiscal deficit has declined, the current account has improved due to strong remittance inflows and growth in IT exports, and credit ratings have shown positive movement.

The Minister emphasised that the government will stay the course in strengthening fiscal discipline, ensuring external stability, and undertaking structural reforms that support durable growth. He noted that reforms in state-owned enterprises and right-sizing of the public sector are being accelerated to improve efficiency and reduce fiscal risks.

The minister also highlighted growing investor confidence, citing recent indigenous investment initiatives and increased private-sector participation.

Pommersheim acknowledged Pakistan’s efforts toward fiscal stabilization and welcomed the signs of improvement in key macroeconomic indicators. He emphasized that the United States values a stable and prosperous Pakistan and noted that strengthening the investment climate remains a shared priority.

He observed that US businesses were closely watching reform progress and that improved policy consistency would further support commercial engagement.

The Finance Minister reiterated Pakistan’s commitment to facilitating foreign investment and maintaining regular engagement with the US business community, including the US Chamber of Commerce and the American Business Council.

The Finance Minister also briefed Pommersheim on Pakistan’s plans to re-enter international capital markets, including Panda Bond issuance, as part of a broader strategy to diversify financing sources.

On privatization, the Minister reaffirmed the government’s resolve to move forward expeditiously. He noted that the privatization process is gaining momentum, with upcoming steps including transactions in the banking and power distribution sectors, as well as outsourcing of major airports beginning with Islamabad. He added that recent developments have reinforced the government’s commitment to reform and private-sector participation.

The meeting concluded with both sides expressing appreciation for the constructive dialogue and agreeing to maintain close engagement to further strengthen Pakistan–U.S. economic cooperation.

Copyright Business Recorder, 2026