• Says country will no longer chase short bursts of 5-6pc GDP growth
• Urges corporates to tap capital markets instead of relying solely on banks

ISLAMABAD: Finance Minister Muhammad Aurangzeb has signalled a clear shift in the government’s economic direction, saying the goal is no longer to pursue short bursts of five to six per cent GDP growth that have repeatedly led to instability.

“We do not want to repeat the past cycles of unsustainable growth,” he said while addressing a two-day economic dialogue organised by the Pakistan Business Council (PBC) on Wednesday. The focus, he added, is moving towards steady, sustainable growth that can break recurring boom-and-bust cycles and place the economy on firmer footing.

He said the growth trajectory itself is not the issue; the real challenge is maintaining momentum once achieved. Previous attempts, he noted, proved unsustainable.

He cautioned against repeating earlier patterns and reiterated that export-led growth remains the only path to stronger performance.

Without naming the country, he referred to a neighbouring economy moving towards 8pc growth but facing high unemployment. In Pakistan, he said, the debate centres on equity and representative growth.

Discussing sectoral performance, Mr Aurangzeb highlighted the government’s aim to revive industrialisation, saying the upcoming industrial policy will place special emphasis on this effort. He expressed hope for 3.5pc GDP growth in the current fiscal year.

He projected growth of around 4pc over the next two to three years, with the potential to reach 6-7pc over the medium term, provided the momentum in agriculture, manufacturing and services continues.

He also gave updates on remittances and external inflows, noting stable monthly remittance levels through formal channels and strong performance of the Roshan Digital Account. He said remittances this year are expected to reach around $41 billion.

The minister said easing monetary conditions would help reduce financing costs, but urged corporate leaders to diversify beyond bank borrowing and make greater use of capital markets for longer-tenor, more competitive financing.

Mr Aurangzeb reaffirmed the government’s commitment to addressing structural issues in taxation and energy. “We are going to hold the first tax advisory council meeting on Thursday. The council will now reach out to businesses for input ahead of the next budget.”

Responding to concerns about security raised by foreign investors, the minister stressed that national security is non-negotiable. Security, macroeconomic stability, and smooth profit repatriation, he said, are the basic prerequisites for attracting and retaining global investment.

He said the inaugural meeting of the 11th NFC will be held on Dec 4. “We will engage provinces to come up with some tangible results.”

He also announced that Pakistan is preparing for its first Panda Bond issuance, expected before the Chinese New Year.

Mr Aurangzeb pointed to renewed interest from global companies such as Aramco, and firms from Turkiye and Abu Dhabi, which have begun investing in energy, mining, technology, logistics and automotive sectors. He described this as a sign of growing confidence in Pakistan’s economic direction.

Dr Zeelaf Munir, chairperson of the PBC, highlighted the role of productive businesses in national progress. “Pakistan’s economic strength depends on evidence-based policy, stability and long-term reform,” she said.

She added that growth requires predictability, fairness and confidence for business, and that sustainable progress needs partnership between government, business, academia and civil society.

Long-term stability

At another session, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan said exports must grow faster than imports to ease pressure on the economy and secure long-term stability. He described industrial development as essential for national prosperity and called industry the backbone of economic progress.

He said stronger export performance requires support for manufacturing and local production, adding that producing key inputs such as steel domestically is necessary to expand export capacity. He was of the opinion that Pakistan should strengthen domestic investment before relying on foreign investors. Faster economic progress, he said, is needed to create employment.

Mr Haroon said a tax package under the upcoming industrial policy will be presented to the IMF. The reform measures being prepared, he added, are intended to support long-term, sustainable economic growth.

Published in Dawn, November 27th, 2025