BANGKOK: Pakistan is shifting towards a sustainable economic model driven by investment and export-led growth following a period of macroeconomic stabilization, Finance Minister Muhammad Aurangzeb stated. Speaking during an event with Michael Kugelman of the Atlantic Council at the IMF-World Bank Annual Meetings 2026, Aurangzeb highlighted the country’s economic trajectory and ongoing reforms.

According to Radio Pakistan, the finance minister reported that Pakistan’s economy grew by 3.7 percent in the last fiscal year, with an anticipated growth of around four percent in the current fiscal year. This growth is attributed to a recovery in the industrial and agricultural sectors. Aurangzeb noted the government’s commitment to structural reforms aimed at increasing tax revenues, enhancing the business environment, and attracting both domestic and foreign investment.

The finance minister pointed out that tax revenues have increased by 40 percent over the past two fiscal years, with the tax-to-GDP ratio reaching approximately 10.3 percent due to digitalization and reforms. Further, the government is advancing the privatization of power distribution companies and the outsourcing of airports to boost efficiency and encourage private-sector participation.

Aurangzeb also underscored the government’s dedication to social protection, allocating 838 billion rupees to the Benazir Income Support Programme. This initiative is complemented by targeted support for vulnerable households, with a focus on jobs, education, and skills development.