Islamabad: Finance Minister Muhammad Aurangzeb has said that the upcoming budget will encapsulate the strategic direction for the country’s economy.
Addressing an event in Islamabad on Monday, he noted that the budget is not solely about revenue and expenditures, but must also provide strategic direction.
He said it will be their effort to make the budget document more strategic this time.
The Finance Minister emphasized the need for export-led growth. He expressed satisfaction over the economy surpassing the four hundred billion dollar mark.
Muhammad Aurangzeb stated that the international community is recognizing Pakistan’s economic turnaround and the macroeconomic stability the country has achieved.
He said that the government would stay the course on structural reforms currently underway in the areas of taxation, energy, State-Owned Enterprises and the right-sizing of the federal government in order to achieve sustainable growth.
He said the process of privatization of SOEs will be accelerated.
He urged the nation to exhibit the same unity on the economic front as it did in response to India’s recent unfounded aggression, stressing that such solidarity was vital for sustainable economic growth.
“We have come together in unity against the unfounded aggression and the unity that the nation has shown, we need the same unity on economic front,” the minister said while addressing a conference organized by Karandaaz Pakistan & Pakistan Banks Association (PBA).
He pleaded for that same spirit of cooperation in economic efforts to move forward and become a meaningful part of the comity of nations. He said, to achieve this, there was need to learn how to collaborate effectively, rather than working in isolation.
He urged development finance institutions (DFIs) to support scaled-up, horizontally integrated efforts rather than fragmented, vertical initiatives.
The minister said, the way the armed forces and political leadership stood united against the recent aggression was a moment of pride for the entire nation, and it was rightly celebrated.
Without naming India, the minister said, every possible effort was made to prevent crucial economic meeting with International Monetary Fund (IMF) from taking place—or to ensure that key items, such as the second tranche under the Extended Fund Facility (EFF) or the $1.3 billion under the Resilience and Sustainability Facility (RSF) for climate resilience, were kept off the agenda.
However, he said, Pakistan moved past as its case was discussed and decided on merit, adding the government had clearly prioritized key areas, and the international community recognizes that Pakistan urgently needs support in developing human capital and strengthening climate resilience.
He said, Pakistan’s recent economic performance has been positively received by international partners, foreign investors, and bilateral counterparts during engagements in Washington, London, Karachi, and Lahore.
However, he cautioned that macroeconomic stability was only a means to an end, not the end itself. The consistent message from partners, he said, was clear and that Pakistan must “stay the course” to avoid repeating past cycles of short-lived recoveries followed by crises.
He detailed key steps such as the digitization of the Federal Board of Revenue (FBR) with private sector support, simplification of tax processes for salaried individuals, and the handover of 24 state-owned enterprises to the Privatization Commission.
On the fiscal side, he said the government has already reduced debt servicing costs by Rs1 trillion this year and will modernize the debt management office next year to align with global best practices.
Aurangzeb also highlighted reforms in pensions, public sector downsizing, and a shift toward a defined contribution system for new government hires.
Looking ahead, the finance minister stressed that for Pakistan to evolve into a $3 trillion economy, it must address challenges related to population growth and climate change.
He noted that during discussions with the World Bank (WB) and International Monetary Fund (IMF), Pakistan made it clear that alongside infrastructure, investment in climate and human capital was essential.
As part of a 10-year Country Partnership Framework signed with the World Bank on January 15, four out of six key focus areas relate directly to climate and population issues.
The agreement includes $20 billion in funding, with additional private sector investment expected through the International Finance Corporation (IFC).
He urged development finance institutions (DFIs) to support scaled-up, horizontally integrated efforts rather than fragmented, vertical initiatives.
