Islamabad, November 30, 2025 – Federal Minister for Finance and Revenue Muhammad Aurangzeb has said that the government is placing strong emphasis on developing the new economy, alongside advancing key structural and institutional reforms, to ensure long-term and sustainable economic growth in Pakistan.
Speaking at a press conference at PTV Headquarters, the minister said the government is now focusing beyond traditional sectors and accelerating progress in high-potential areas such as information technology, mines and minerals, and pharmaceuticals. He noted that Pakistan’s IT sector is currently expanding at 25% annually, while the mining sector has an estimated yearly potential of $3.5 billion.
Aurangzeb added that Pakistan’s exports are growing by 5% per year, and the manufacturing sector has posted a healthy 4.1% annual growth rate. He further stated that remittances are projected to reach $41 billion this year, reflecting steady upward movement.
Encouraging Private-Sector Competitiveness
The finance minister emphasized that the government aims to make the private sector more competitive within the national economy. However, he urged industries—especially the textile sector—to focus on innovation, productivity, and value addition to strengthen their contribution to economic growth.
He reiterated the need to increase the country’s tax-to-GDP ratio, saying it must rise well above the current 9% to support development and fiscal stability.
NFC Award, IMF Reviews, and Institutional Reforms
Addressing the 11th National Finance Commission (NFC) Award process, Aurangzeb said all stakeholders would convene soon, with expectations of meaningful progress. He highlighted that Pakistan successfully completed both recent IMF reviews, signaling enhanced confidence from global financial institutions.
He noted improvements across sectors—including cement, petroleum, and fertilizers—from July to October, along with increased production in large-scale manufacturing. Sustained industrial growth, he said, remains crucial for stabilizing the economy and strengthening the balance of payments.
The minister also expressed optimism that the current account position would improve this year, although continuous monitoring is needed.
Upcoming Policy Decisions and Investment Climate
Aurangzeb revealed that the federal cabinet will soon approve the proposal to discontinue the Export Development Fund, as the government works to boost exports through other channels.
Citing a recent survey by the Overseas Chambers of Commerce and Industry, he said Pakistan has been ranked more favorably for economic activity and foreign investment. Local companies have begun manufacturing new products, while multiple international firms—particularly in the energy sector—have entered the Pakistani market.
He added that Pakistan is expecting further investment inflows in 2026, supported by ongoing reforms and a more conducive business environment.
Debt, Diagnostics, and Future Reforms
The finance minister said debt servicing remains an under-discussed issue despite its significance. For the first time in nine years, Pakistan’s total debt stock has not increased, reflecting a shift toward better financial management.
He confirmed that the government has requested the release of the Global Diagnostic Report and is already working on several of its recommendations to improve governance, competitiveness, and institutional efficiency.