Islamabad, October 10, 2025 — Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, revealed on Friday that Pakistan’s actual economic size may be close to one trillion dollars, but less than half of it is formally documented.
He estimated that only around $411 billion of the economy is officially recorded, while the rest operates in the informal or undocumented sector.
Speaking at a business session organized by the Overseas Investors Chamber of Commerce & Industry (OICCI) and the Pakistan Business Council (PBC) for a visiting Saudi business delegation, Aurangzeb emphasized the importance of documentation and digitization for Pakistan’s economic transformation. The event, held in Karachi, was attended by prominent Pakistani and Saudi business leaders.
Addressing the participants virtually, the Finance Minister explained that Pakistan’s economy is undergoing two major reform tracks — taxation reform and digital transformation — both personally overseen by the Prime Minister. He underscored that greater digitization would not only improve transparency but also expand the tax base, enabling the government to mobilize more domestic revenue and reduce dependence on external borrowing.
While acknowledging Pakistan’s economic challenges, Aurangzeb pointed out that macroeconomic stability has largely been restored. “All three major global rating agencies are now aligned after several years, which reflects international confidence in Pakistan’s economic direction,” he said. He further noted that stable exchange rates, controlled inflation, and consistent foreign reserves have brought predictability to capital and profit repatriation processes.
Referring to the recent $500 million Eurobond repayment made on September 30, the Minister stated that “when there is macroeconomic stability, such events become non-events — there is no drama.” He credited this achievement to the government’s disciplined fiscal management and ongoing economic reforms.
Aurangzeb also highlighted Pakistan’s evolving partnership with Saudi Arabia, praising the efforts of His Excellency Al-Tuwaijri and the Saudi team for fostering stronger economic ties. He lauded the Kingdom’s Vision 2030 as a model for development and execution, expressing Pakistan’s desire to learn from it, particularly in driving export-led growth. The recent approval of the Security Pact between Saudi Arabia and Pakistan, he said, marked a milestone in strengthening bilateral relations.
The Finance Minister reaffirmed the government’s commitment to structural reforms in the taxation and energy sectors, being implemented through active consultation with the private sector. He appreciated the role of both OICCI and PBC in contributing policy insights for reform and modernization.
Discussing Pakistan’s engagement with the International Monetary Fund (IMF), the Minister confirmed that discussions remain “constructive,” with hopes of reaching a staff-level agreement during his upcoming meetings in Washington. He reiterated that Pakistan would rely on its own resources for immediate relief and rehabilitation following recent floods, seeking external assistance only for long-term reconstruction.
Concluding his remarks, Senator Aurangzeb extended his gratitude to His Highness Prince Mansour and the Saudi business delegation for their visit. He expressed optimism that the engagements in Karachi and Lahore would unlock new opportunities for collaboration in key sectors such as agriculture, mining, information technology, pharmaceuticals, and tourism.
The Finance Minister added that he looks forward to further discussions with Saudi leadership during the Future Investment Initiative (FII) in Riyadh, reinforcing Pakistan’s resolve to deepen strategic and investment ties with its long-standing partners.