ISLAMABAD: Federal Minister for Finance and Revenue, Senator Mohammad Aurangzeb, while speaking at the Pakistan Conference 2025 at Harvard University, said that Pakistan has reached a pivotal moment of economic recovery and transformation.
“After inheriting an economy facing significant challenges—from contracting GDP to depleting reserves—we have stabilised the fundamentals, restored confidence, and reignited growth,” he said at the conference titled “Bridging Divides, Building Tomorrow: Pakistan’s Path to Inclusive Growth and Governance.”
The Pakistan Conference is an annual flagship event that brings together policymakers, academics, business leaders, and students to discuss Pakistan’s economic, political, and social trajectory, according to a press release issued by the Ministry of Finance on Monday.
Organised by Harvard students with support from university research centers, the event is the largest student-led conference on Pakistan in the United States. The conference serves as a vital forum to advance collaborative solutions, promote global engagement, and showcase the creativity and resilience of the Pakistani people.
Pakistan’s finance minister highlighted key achievements including a historic reduction in inflation to 0.7%, the lowest in 60 years; foreign exchange reserves doubled; a 3% currency appreciation; and a current account surplus exceeding $1 billion in March 2025.
He said that Pakistan also witnessed a 44% increase in Foreign Direct Investment (FDI), a 24% rise in IT exports, and record-high remittances projected at $38 billion. For the first time in 24 years, the country achieved a fiscal surplus, with the highest primary fiscal surplus in two decades. Fitch has upgraded Pakistan’s sovereign credit rating to B- with a stable outlook.
Emphasizing that “stability is not an end but a means to an end, ” the finance minister outlined the government’s strategy, including maintaining fiscal discipline, controlling inflation, and pushing ahead with deep structural reforms in energy, taxation, governance, and the management of state-owned enterprises.
He outlined major growth opportunities in Pakistan’s rich mineral resources, expanding IT sector, green energy initiatives, and the country’s youthful entrepreneurial population. Strengthening human development, he emphasized, is critical to sustaining high, inclusive growth.
On debt management, the finance minister noted that Pakistan successfully reduced its public debt-to-GDP ratio from 75% to 67.2%, with a plan to bring it below 60% over the medium term through prudent fiscal management, enhanced domestic financing, and tax reforms.
He said that rightsizing government expenditures and privatising loss-making state-owned enterprises are expected to save up to 2% of GDP annually, with efforts focusing on transparency, competitive processes, and investor confidence.
Discussing Pakistan’s financial sector, Aurangzeb laid out plans to build a deeper and more resilient system by expanding digital banking, capital markets, and green finance.
Highlighting the impact of climate change, the finance minister reaffirmed Pakistan’s commitment to integrating resilience into infrastructure and agriculture. He singled out the Resilience and Sustainability Facility (RSF) from IMF and Country Partnership Programme (CPF) approved by the World Bank as anchor for building climate resilience.
“Pakistan’s future will be shaped by bold, necessary choices. By investing in our people, modernising our economy, and staying committed to reform, Pakistan will emerge stronger, greener, and more competitive,” concluded the finance minister.
