ISLAMABAD: Finance Minister Muhammad Aurangzeb stressed that Pakistan, like many emerging markets, must build stronger fiscal and external buffers to withstand growing global uncertainties. Speaking at an event, he noted that various emerging economies, including Pakistan, are progressing through long-term structural reform agendas.
Highlighting the evolving global landscape, Aurangzeb pointed to geopolitical tensions, trade fragmentation and supply chain readjustments. These factors, he said, require countries to strengthen their shock-absorption capacity. “Every country, including Pakistan, needs to ensure that we build fiscal and external buffers to deal with exogenous shocks,” he said, referring to border tensions and internal law and order challenges.
He emphasised that the federal government and the Ministry of Finance must take responsibility for ensuring these buffers remain in place. While reiterating that Pakistan has achieved macroeconomic stability, the minister cautioned against complacency. “We want to avoid a gold rush situation,” he warned.
Sharing early economic indicators, Aurangzeb revealed that large-scale manufacturing grew by around 4% year-on-year in the first four months of the fiscal year. He described the improvement as encouraging but urged caution, noting that it was “not yet a trend” even though underlying fundamentals were strengthening.
Aurangzeb said Pakistan is increasingly becoming an attractive destination for foreign investment. Referring to multinational corporations, he noted that MNCs base their investment decisions on returns and strategic priorities. He also pointed to a broader global shift “from West to East.”
The minister highlighted Google’s recent visit to Pakistan, during which the tech giant announced the opening of its local office and plans to establish the country as a technical and export hub.
Discussing structural reforms, Aurangzeb revealed that the Federal Board of Revenue is no longer responsible for policymaking. He also noted recent measures to support exporters, including the government’s decision to completely abolish the Export Development Surcharge (EDS) — a proposal initially put forward for suspension only.
The withdrawal of the 0.25% EDS, implemented on Monday, is expected to provide long-awaited relief to exporters and enhance Pakistan’s competitiveness in global markets.
