Federal Finance and Revenue Minister Muhammad Aurangzeb declared that Pakistan is at a “pivotal moment of economic recovery” during a keynote speech at Harvard University’s annual conference on Pakistan, according to the Associated Press of Pakistan (APP).
Speaking at the student-led forum titled “Bridging Divides, Building Tomorrow: Pakistan’s Path to Inclusive Growth and Governance”, Aurangzeb highlighted recent progress in stabilising the economy and charting a course for sustainable growth.
Referencing a World Bank update, the minister acknowledged that the projected economic growth for the current fiscal year had slightly dipped—from 2.8% to 2.7%—due to tight fiscal and monetary conditions. Nonetheless, he emphasised that Pakistan has made significant strides since inheriting an economy facing contracting GDP and dwindling foreign reserves.
“We have stabilised key fundamentals, restored market confidence, and restarted growth,” Aurangzeb told the audience.
Among the achievements he outlined:
- Inflation dropped to 0.7%, the lowest in six decades
- Foreign exchange reserves doubled
- The Pakistani rupee appreciated by 3%
- The country recorded a $1 billion current account surplus in March 2025
Aurangzeb also reported a 44% increase in foreign direct investment (FDI), a 24% rise in IT exports, and record-high remittances, expected to reach $38 billion this year.
In addition, he noted Pakistan’s improved global financial standing, citing Fitch’s credit rating upgrade to B- and the country’s largest fiscal surplus in 24 years. He added that Pakistan’s public debt-to-GDP ratio had dropped from 75% to 67.2%, with plans to bring it below 60% in the medium term through fiscal reforms, domestic financing, and tax improvements.
He also stressed the government’s commitment to reducing public expenditure by reforming and privatising loss-making state-owned enterprises, potentially saving up to 2% of GDP annually. Other priorities include expanding digital banking, developing capital markets, and promoting green finance.
“Stability is not the destination — it’s the starting point,” Aurangzeb said, as he laid out structural reform goals in key sectors such as energy, taxation, governance, and state-owned enterprise management.
He underscored the importance of human development, pointing to opportunities in the IT and renewable energy sectors, and reiterated that investing in people is crucial for achieving inclusive, long-term growth.
Concluding his remarks, Aurangzeb stated, “Pakistan’s future depends on bold and necessary choices. By investing in human capital, modernising our economy, and remaining committed to reform, Pakistan can become stronger, greener, and more competitive.”
The Harvard conference serves as a platform for thought leaders, policymakers, and academics to engage in meaningful dialogue on Pakistan’s future, aiming to foster collaboration and highlight the resilience and innovation of the Pakistani people.
