Aurangzeb apprises international investors of reform agenda

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met Wednesday at the Finance Division with a high-level International Investors’ Delegation comprising representatives from the International Finance Corporation (IFC), British International Investment (BII), Asian Development Bank (ADB), and Baltoro Capital.

The meeting focused on strengthening private sector-led growth, mobilizing investment, and deepening collaboration in support of Pakistan’s reform agenda.

The Finance Minister acknowledged IFC and ADB as long-standing development partners and welcomed their enhanced engagement, particularly in private sector financing and local currency initiatives.

Discussions emphasized the importance of protecting and expanding private sector exposure, reducing sovereign risk, and increasing private sector participation through innovative local currency financing mechanisms.

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Senator Aurangzeb highlighted that Pakistan has made significant progress in restoring macroeconomic stability over the past 18 months. He noted improvements in currency stability and foreign exchange reserves, which are projected to cover approximately three months of imports by year-end. He also underscored the government’s efforts to reduce the investment deficit and create a more stable and predictable economic environment.

The minister briefed the delegation on Pakistan’s ongoing trade liberalization program, including tariff rationalization aimed at enhancing competitiveness and removing long-standing protectionist barriers. He stated that this reform path seeks to position Pakistan on a trajectory similar to successful Southeast Asian economies. He further noted the strong performance of the services sector, with exports expected to continue their upward trend.

Discussions also covered energy sector reforms, tax policy improvements, and efforts to enhance tax administration efficiency. The Finance Minister reiterated the Government’s commitment to broadening the tax base, improving collection mechanisms, and aligning tax policy with growth objectives.

On the financial front, Senator Aurangzeb informed the delegation that the government is making all its repayments smoothly while exploring access to international debt markets through approved programs, including the inaugural Panda Bond and Global Medium-Term Note (GMTN) framework.

He emphasized that strengthening domestic investor confidence remains a priority, noting that successful transactions - such as the privatization of Pakistan International Airlines through a local consortium - reflect growing domestic investment commitment, thereby providing a positive signal to global investors.

Representatives of ADB, IFC, BII and Baltoro Capital reiterated their commitment to supporting Pakistan’s reform and investment agenda. It was noted that development partners are increasingly focusing on catalyzing private sector participation, supporting trade, and facilitating private equity investments in infrastructure, SMEs, mid-cap enterprises, job creation, and economic diversification.

Participants underscored the importance of mobilizing both domestic and foreign capital, rationalizing tax structures affecting investment vehicles, and building a pipeline of private equity platforms to support sustained capital formation. They also emphasized continued collaboration with the Government on tax reforms, investment facilitation, and improving the overall business environment.

The meeting concluded with a shared commitment to deepen partnership and accelerate efforts toward a stable, investment-friendly, and private sector-driven growth model for Pakistan.

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