Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has highlighted Pakistans strong macroeconomic recovery, reform momentum, and renewed global confidence during an interview with CGTN America, held on the sidelines of the IMF±World Bank Annual Meetings in Washington D.C.
According to the Minister, Pakistan has achieved major gains in macroeconomic stability, with inflation returning to single digits, fiscal and external accounts stabilizing, and foreign exchange reserves rising to cover 2.5 months of imports. The exchange rate has remained steady, and global rating agencies ³ Fitch, SandP, and Moodys ³ have upgraded Pakistans outlook for the first time in nearly three years.
He confirmed that the IMFs second review under the Extended Fund Facility has been completed, leading to a staff-level agreement, reflecting continued confidence in Pakistans reform program. Structural reforms are underway in taxation, energy, and public finance, alongside a revived privatization drive, which recently saw the sale of a small bank to a UAE conglomerate. The privatization of the national airline is expected to conclude before the end of the fiscal year.
Senator Aurangzeb said Pakistan has regained access to international financial markets after more than two years, having repaid a $500 million Eurobond in September and preparing to issue its first-ever Panda Bond by year-end. The next Eurobond repayment of $1.3 billion is due in April 2026.
The Minister underlined that while climate change and recent flooding have impacted agriculture, particularly rice and cotton crops, GDP growth for FY2025±26 is still projected at around 3.5 percent.
He reaffirmed Pakistans enduring partnership with China and announced the launch of CPEC Phase 2.0, focusing on industrial cooperation, special economic zones, and private-sector investment. During the Prime Ministers visit to Beijing, 24 new joint ventures were signed in key sectors including mining, IT, AI, agriculture, and pharmaceuticals.
Highlighting digital transformation, Senator Aurangzeb said the government is digitizing all payments and integrating AI and data analytics to improve efficiency and transparency. These initiatives have raised Pakistans tax-to-GDP ratio from 8.8 percent to 10.2 percent.
On trade, he announced the conclusion of tariff negotiations with the United States, securing favorable terms for textile exports, while emphasizing Pakistans commitment to trade diversification with Central Asian and South±South partners.
The Minister also expressed support for President Xi Jinpings Global Governance Initiative, emphasizing its alignment with Pakistans foreign policy principles of sovereign equality and multilateral cooperation.
Concluding the interview, Senator Aurangzeb reaffirmed Pakistans commitment to stability, reform, and inclusive growth, stressing that the governments priority remains resilience, investment, and sustainable development.