Government Prioritizes Boosting Exports, Reducing Reliance on Imports: Finance Minister

Islamabad: Federal Finance Minister Muhammad Aurangzeb has said that the government’s top priority is to increase exports and reduce reliance on imports to ensure sustainable economic growth.

In his statement, the finance minister said the government will issue a formal proposal in the coming weeks for the selection of financial advisers. He added that authorities are evaluating various options for issuing international bonds, including dollar, euro, and Islamic Sukuk bonds, while Pakistan is also preparing to launch its first-ever Panda bond.

According to a statement issued by the Ministry of Finance, Pakistan is preparing to re-enter the global bond market after a gap of four years, reflecting improved economic stability. This comes after the country narrowly avoided default in recent years.

Aurangzeb said the government will soon formally invite proposals for the appointment of financial advisers, while multiple financing options are under consideration, including dollar, euro, Islamic Sukuk, and Panda bonds. These steps, he said, signal Pakistan’s return to international financial markets.

He said that during the World Economic Forum in Davos, the Pakistani delegation led by Prime Minister Shehbaz Sharif is conveying a clear message to global investors that Pakistan’s economy has stabilized and is open for investment, particularly in the minerals, agriculture, and technology sectors.

The finance minister noted that Pakistan has achieved significant macroeconomic stability, with key indicators such as inflation, interest rates, fiscal deficit, and the current account balance showing positive trends. He recalled that Pakistan had largely exited the global bond market after 2022 but implemented tough fiscal reforms under IMF programs. Inflation, which had surged to around 40 percent at one point, has now fallen to single digits, a primary fiscal surplus has been restored, and international rating agencies have upgraded Pakistan’s outlook.

Aurangzeb said foreign exchange reserves are expected to reach the equivalent of three months of imports by June, which meets international benchmarks. He added that there is no immediate pressure on the rupee due to an improved balance of payments, rising remittances, growing services exports, and relative currency stability over the past year and a half.

He further stated that alongside economic stabilization, long-delayed structural reforms are being pursued, including privatization of state-owned enterprises and expansion of the tax base. The finance minister said the national airline was sold last month, and the government is considering selling its stake in New York’s Roosevelt Hotel, outsourcing management of major airports, and privatizing nearly two dozen other state-owned entities.

Reiterating the government’s strategy, Aurangzeb said export-led growth remains the priority to avoid recurring balance-of-payments crises driven by excessive import dependence. “We must stay the course on reforms, as this is the only path to sustainable growth,” he added.