Islamabad: Finance Minister Muhammad Aurangzeb has underscored the government’s decisive shift toward an inclusive, private-sector-driven, and export-led growth model. Addressing a news conference in Islamabad, he highlighted the recent abolition of the Export Development Surcharge as a key demonstration of this commitment.
According to Radio Pakistan, Aurangzeb added that the abolition of the surcharge reflects the government’s resolve to empower exporters, improve competitiveness, and channel resources and decision-making authority toward the private sector to realize Pakistan’s export potential. He reiterated that the government’s medium-term economic vision rests on moving from stabilization to durable, broad-based, and inclusive growth led by exports, remittances, productivity, and private investment.
He reported that from July to October, cement production rose by 16 percent, fertilizer by nine percent, petroleum by four percent, automobiles by 31 percent, and mobile phone manufacturing by 26 percent. Large-scale manufacturing grew by 4.1 percent year-on-year in the first quarter, reflecting a positive shift compared to the contraction recorded last year. He emphasized that the challenge ahead is to sustain this trajectory while ensuring that Pakistan does not return to boom-and-bust cycles driven by external sector pressures.
The Minister highlighted that export performance has strengthened, with overall exports rising 5 percent and IT services exports growing by over 20 percent year-on-year. He stressed that the IT sector has recorded back-to-back monthly highs in September and October, establishing itself as a critical pillar of the “new economy,” alongside emerging sectors such as minerals and mining.
He noted that the $3.5 billion Reko Diq-related syndication, led by IFC and now financially closed following the resolution of procedural delays, represents a transformational investment that will generate an estimated $2.9 billion in annual exports once production commences. The country received remittances worth $38 billion last year, and this figure is expected to cross $41 billion this year, providing a sizeable buffer to the current account.
Aurangzeb underscored that structural reforms remain central to the Government’s agenda. He said work on pension, debt, SOE reform, the digital economy, taxation, energy, and rightsizing is proceeding as committed earlier. On public finance, he reported that Pakistan’s domestic debt stock has stabilized for the first time in nine years, and debt servicing costs have begun to decline with the reduction in the policy rate. He confirmed that Pakistan’s inaugural Panda Bond would be issued soon.
He announced that the 11th NFC Award process would begin next week, with Chief Ministers and provincial finance teams joining deliberations. Speaking on the Global Diagnostic and Corruption Report, Aurangzeb clarified that the Government itself had requested and facilitated the assessment to strengthen institutional reforms. He noted that the report acknowledged significant progress in sectors including taxation and governance, and that many of its priority recommendations were already work in progress.
He affirmed the Government’s commitment to implementing the remaining recommendations as part of broader institutional reforms essential to sustaining Pakistan’s economic turnaround. The Minister also addressed questions on taxation, energy costs, and competitiveness, acknowledging the concerns of the formal sector regarding high taxation and tariffs. He reiterated expanding the tax base, enhancing enforcement, reducing leakages, and ensuring fairness between formal and informal sectors. He pointed out that tax refunds have risen from 200 billion rupees to 250 billion rupees over the five-month comparison period, reflecting responsiveness to industry needs.
Aurangzeb highlighted the strong interest of international firms in Pakistan across sectors, including energy, mining, IT, telecom, construction, logistics, and EV manufacturing. He cited recent commitments from global companies such as Aramco, Wafi, Gunvor, Turkish Petroleum, Barrick Gold, Citizen Metals, Nova Minerals, BYD, Chery, NWTN Motors, Abu Dhabi Ports, and Google, whose senior leadership recently announced the opening of a Pakistan office to serve as a future technical and export hub.
The Minister reiterated that Pakistan had turned a corner from the crisis of two years ago and was now pursuing a stable, export-driven, investment-focused growth model grounded in structural and institutional reforms. He stressed that agriculture, large-scale manufacturing, the new economy, remittances, and private investment would collectively contribute to a more resilient and inclusive economic future for Pakistan.