Aurangzeb discusses economic outlook, privatisation agenda with Saudi finance minister in Davos

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met with Mohammed bin Abdullah Al-Jadaan, Finance Minister of the Kingdom of Saudi Arabia, on Monday during the World Economic Forum Annual Meeting 2026 in Davos, Switzerland.

During the meeting, Aurangzeb briefed the Saudi minister on Pakistan’s macroeconomic indicators, saying the economy is moving through a stabilisation phase. He noted that foreign exchange reserves now provide about three months of import cover, reflecting an improvement in external buffers.

The finance minister also shared updates on capital market activity, stating that 16 initial public offerings are currently in the pipeline, following nine IPOs completed last year, with participation from more than 120,000 new investors.

Aurangzeb said interest rates have begun to ease, while clarifying that monetary policy decisions remain the responsibility of the State Bank of Pakistan. He added that economic growth reached 3.1% last year and accelerated to 3.7% in the first quarter of the current fiscal year.

On the external account, he said the government is focused on maintaining a sustainable current account balance, supported by remittances and export-linked services. He noted that remittance inflows are projected to exceed $41 billion this year, up from $38 billion last year, with IT services contributing positively to the balance.

Aurangzeb also outlined Pakistan’s efforts to attract foreign direct investment, particularly in minerals and mining, agriculture, and export-oriented sectors. He briefed Al-Jadaan on ongoing privatisation plans, including recent investment from the UAE in a digital venture and progress on the privatisation of Pakistan International Airlines.

He said the government plans to move ahead with phased privatisation of selected state-owned enterprises, including distribution companies and major airports in Islamabad, Lahore and Karachi, under the guidance of the Privatisation Commission.

Al-Jadaan shared Saudi Arabia’s experience with privatisation reforms, including the conversion of airports into revenue-generating assets. Both ministers reaffirmed their intent to strengthen economic ties between Pakistan and Saudi Arabia.