Finance Minister Muhammad Aurangzeb reassured on Tuesday that Pakistan is well-equipped to handle any potential economic fallout arising from the geopolitical tensions in the Middle East.
Speaking at the “National Workshop on Transitioning to Defined Contribution Pension Schemes,” organized by SECP in Islamabad, the finance minister confirmed that the government had held a detailed meeting on Monday with all relevant stakeholders to ensure sufficient stocks and manage asset pricing effectively.
He expressed confidence that Pakistan is prepared for any escalation, stating, “We are in a good place concerning the actions we might need to take, in case things go towards further escalation. I hope they don’t.”
Aurangzeb also touched on discussions regarding US tariffs, revealing a productive meeting with US Commerce Secretary Howard Lutnick. He noted that both countries are progressing positively to ensure Pakistan remains competitive in terms of US tariffs, reinforcing the strategic partnership between the two nations.
In light of the ongoing trade issues, Aurangzeb emphasized that Pakistan is working to address the 29% reciprocal tariffs imposed by former President Donald Trump, a measure that has had a significant impact on trade between the two countries.
The finance minister also reiterated the government’s commitment to structural reforms in key sectors, including energy, state-owned enterprises (SOEs), and taxation. He highlighted the government’s focus on reducing debt servicing costs and fostering a more competitive economy, particularly through tariff reforms.
He added that pension payments have now surpassed a trillion rupees, a figure larger than the federal government’s development budget.
Aurangzeb concluded by affirming the government’s determination to stay the course with these reforms, which aim to promote sustainable economic growth and enhance Pakistan’s competitiveness on the global stage.
