Pakistan seeks stronger export financing, SME risk protection and private-sector investment to sustain economic growth and diversify exports.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has stressed the need for Pakistan to shift towards a sustainable, export-driven and private-sector-led economic growth model.
Speaking as chief guest at Pak EXIM’s Partnerships That Power Progress event, the Finance Minister said the country had an opportunity to move beyond the recurring boom-and-bust cycles linked to import dependence and balance-of-payments pressures.
The event featured the signing of two major agreements designed to strengthen Pakistan’s export financing and risk-management framework. These included a reinsurance agreement between the Export-Import Bank of Pakistan (Pak EXIM) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), along with an approximately Rs3 billion SME Risk Pool established between the Export Development Fund (EDF) and Pak EXIM.
Aurangzeb said Pakistan was gradually transitioning from economic stabilization towards growth. He highlighted that the economy expanded by around 3.7% in FY26, while the fiscal deficit fell to 2.6% of GDP, its lowest level in 22 years. The country has also maintained primary surpluses for three consecutive years.
He emphasized that future growth must be sustainable and driven primarily by exports and private-sector investment. According to the minister, the government’s responsibility is to create an enabling environment that encourages investment, improves competitiveness and expands export capacity.
The FY27 Budget, he said, has introduced several measures supporting exporters, including tax relief, withdrawal of advance tax on exports, a significant reduction in Super Tax and its elimination for qualifying highly export-oriented companies. Measures to improve energy competitiveness and maintain affordable export financing were also highlighted.
The Finance Minister noted that exporters continue to access financing at a competitive rate of 4.5%, despite recent changes in the policy rate.
Aurangzeb described Pak EXIM as a key institution for providing export refinance, long-term financing and insurance support through facilities such as the Export Finance Scheme and Long-Term Financing Facility.
He also called for diversification of Pakistan’s export base by targeting new products, services, markets and exporter segments. Greater financing access for small and medium-sized enterprises was identified as particularly important.
Pakistan’s services exports have already shown significant progress, with IT exports reaching around $4.6 billion and freelancer earnings approximately $1.7 billion. However, Aurangzeb said goods exports must expand substantially beyond the existing $30 billion base.
The Pak EXIM-ICIEC agreement is expected to strengthen underwriting capacity and expand trade and export credit insurance coverage. ICIEC will provide international expertise in managing commercial and political risks associated with international trade.
Meanwhile, the Rs3 billion SME Risk Pool is intended to improve smaller businesses’ access to export credit insurance and protect them against non-payment risks.
Aurangzeb said the success of these initiatives would ultimately depend on implementation. He stressed that stronger coordination among exporters, commercial banks, EDF, Pak EXIM, the State Bank of Pakistan and the government would be essential to build a more competitive and diversified export ecosystem.
The Finance Minister said the ultimate objective was to convert economic stability into higher private investment, productive capacity, SME participation, employment, foreign-exchange earnings and sustained Pakistan export-led growth.