Finance Minister Muhammad Aurangzeb says stronger fiscal and external buffers are creating room for responsible growth, investment and climate-focused development.
Pakistan is moving beyond macroeconomic stability and entering a new phase focused on sustainable and responsible economic growth, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said on Tuesday.
Addressing the opening session of the two-day National SDGs Investment Fair organized by UNDP Pakistan, Aurangzeb highlighted improvements in the country’s economic indicators and stressed the need to convert stability into long-term development.
The investment fair features around 35 investment-ready, SDG-aligned public-private partnership projects covering transport, energy, climate, agriculture, water, urban development, tourism, industry and technology.
Aurangzeb described macroeconomic stability as a fundamental requirement for restoring investor confidence. He said stronger domestic investment could also help attract greater foreign investment into Pakistan.
The finance minister pointed to a significant reduction in the country’s twin deficits, which he said had declined to around 2.6% of GDP by the end of June from 12.5%. He also noted that the fiscal deficit had reached a 22-year low, while Pakistan recorded primary surpluses for three consecutive years on the external side.
Foreign exchange reserves held by the State Bank of Pakistan have also increased substantially, reaching around $21.4 billion. According to Aurangzeb, this provides nearly three months of import cover compared with only about two weeks when the economic stabilization process began.
He said GDP growth is projected at around 4% during the current fiscal year but emphasized that Pakistan’s objective should be responsible and sustainable expansion rather than short-term growth.
The minister also highlighted growing activity in domestic capital markets, noting that the Pakistan Stock Exchange recorded 11 initial public offerings during the previous fiscal year and five in the first quarter of FY2026-27. He said equity raising indicates companies are seeking to expand operations, establish new units or invest locally.
Aurangzeb further highlighted progress in privatization, foreign investment and international financing, including the successful Eurobond launch. He said interest from international investors demonstrated growing confidence in Pakistan’s economic direction.
He emphasized the importance of public-private partnerships in financing development and praised the Sindh government’s PPP model. He also said climate financing initiatives, green bonds and sustainable finance frameworks could support future investment.
Senator Sherry Rehman stressed that sustainable cities are becoming increasingly important as population growth and urban migration create new challenges. She said effective public-private partnerships can help bridge financing and capacity gaps while making development projects financially viable and bankable.
Aurangzeb identified population growth and climate change as two major long-term challenges, calling for coordinated action by federal and provincial governments, the private sector and international development partners to secure Pakistan’s sustainable growth.