US-Iran deal could create favourable conditions for investment and trade in Pakistan, Aurangzeb says

Finance Minister Muhammad Aurangzeb said on Tuesday that easing tensions following the recently agreed understanding between the United States and Iran could create more favourable conditions for investment, trade and economic activity in Pakistan.

Speaking during a meeting with United Kingdom Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan Hamish Falconer, Aurangzeb said prolonged regional instability could affect economic confidence, energy markets, supply chains and growth prospects across emerging economies.

He said Pakistan had consistently supported dialogue, de-escalation and the peaceful resolution of regional conflicts and had advocated for reducing tensions from an early stage.

The finance minister said the government’s economic planning and fiscal assumptions had taken account of external and geopolitical risks, including possible indirect and second-order effects of prolonged regional uncertainty.

Falconer called on Aurangzeb at the Finance Division and was accompanied by British High Commissioner to Pakistan Jane Marriott.

Ministerial Private Secretary Alice Duffy, British High Commission Second Secretary for Economy Sarabjit Singh and senior officials of the Finance Division also attended the meeting.

The two sides discussed regional developments, Pakistan’s macroeconomic outlook, fiscal priorities, institutional modernisation and opportunities to expand economic cooperation between Pakistan and the United Kingdom.

Aurangzeb briefed the delegation on the government’s economic reform programme and the priorities outlined in the federal budget for fiscal year 2026-27.

He said the government remained focused on preserving macroeconomic stability, sustaining economic recovery, accelerating structural reforms and creating conditions for inclusive and durable growth.

The finance minister also outlined measures being taken to improve revenue mobilisation, strengthen tax compliance and reduce leakages.

He said the government was modernising tax administration through technology, data integration, centralised processing and digital invoicing.

According to Aurangzeb, the reforms were intended not only to improve revenue collection but also to enhance transparency, reduce discretionary intervention and rebuild trust between citizens, businesses and public institutions.

The meeting also covered privatisation, rightsizing of public-sector entities, improvements in public expenditure efficiency, digital governance and targeted social protection.

Aurangzeb highlighted progress towards technology-based public service delivery and more efficient allocation of government resources.

Falconer acknowledged the government’s reform programme and stressed the importance of sustained implementation, institutional strengthening, improved governance and greater economic competitiveness.

He also reaffirmed the United Kingdom’s interest in continued engagement with Pakistan in areas of mutual economic interest.

Both sides agreed to maintain close engagement and strengthen Pakistan-United Kingdom cooperation in support of economic growth, institutional development and regional stability.