What happened

According to Dawn, Pakistan's Finance Minister Muhammad Aurangzeb announced that the government will not pursue liquidity-fuelled or consumption-led economic growth. Speaking at a Lahore event organized by the American Business Forum, he emphasized that the nation must focus on sustainable, export-driven expansion and proceed with tariff reforms to boost industrial competitiveness. The gathering also included contributions from American Business Forum President Osman Khalid Waheed, former State Bank governor Raza Baqir, and Habib Group Vice Chairman Salman Burni.

Key facts

According to Dawn, key details regarding Pakistan's economic indicators and policies include:

  • The administration is progressing into the second year of tariff reforms aimed at lowering costs for imported raw materials and intermediate goods.
  • Recent budget policies introduced to stimulate exports include the removal of super taxes, lower tax slabs, and exporter financing at 4.5 percent.
  • The country's combined twin deficits decreased from 12.5 percent of gross domestic product to 2.6 percent at the close of the last fiscal year, driving the fiscal deficit to a 22-year low.
  • IT export services expanded from under $1 billion to $4.6 billion, with expectations to reach $5.5 billion during the current fiscal year.
  • External debt repayments fell from $26.5 billion in the previous fiscal year to $21.5 billion in the current fiscal year.
  • Universal energy subsidies have been replaced by targeted relief estimated to assist 40 million to 50 million individuals.
  • Newly recruited civil bureaucrats have been shifted to defined-contribution pension plans.

Why it matters

According to Dawn, moving away from import-dependent expansion is meant to break the cycle of recurring balance-of-payments crises. The finance minister indicated that ongoing reforms and debt management are designed to build resilience amid uncertain global economic conditions, high energy risks, and climate issues. He also highlighted domestic challenges, including a 2.55 percent population growth rate. Further details regarding comparison metrics with other regional countries were not specified in the source; please check the official notice.

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Source: Dawn - Home · Published October 24, 2026 · Photo by Brett Jordan on Unsplash