Pakistan Poised for Sustainable Growth Through Structural Reforms, Says Finance Minister

Finance Minister Muhammad Aurangzeb stated on Tuesday that Pakistan is now ‘well-positioned’ for sustained economic expansion because of ongoing structural changes. He made these comments during a virtual address to the Meeting of Ministers of Finance and Chairmen of Central (National) Banks of SCO Member States, which took place in Beijing, China.

Aurangzeb stated that he had wanted to attend the meeting personally; however, he could not travel to China due to the current annual budget session in Pakistan.

In his speech, the finance minister emphasized Pakistan’s latest macroeconomic data, including a “current account surplus, primary surplus on the fiscal side, a stable currency supported by growing FX reserves, and inflation at a multi-year low.”

He noted that credit rating agencies have improved Pakistan’s sovereign rating.

“This is a result of structural reforms that are progressing well in areas such as taxation, state-owned enterprises, energy, and public finances. We are dedicated to maintaining this path and will be well-prepared for sustainable growth in the upcoming year.”

The finance minister reaffirmed Pakistan’s commitment to the Shanghai Cooperation Organization (SCO) vision and principles.

He emphasized that the SCO is a crucial platform for advancing regional collaboration, strengthening economic connections, and striving for shared prosperity, consistent with the “Shanghai Spirit” and the SCO Charter.

The minister highlighted Pakistan’s continuous efforts to improve economic cooperation within the SCO framework, advocating for increased collaboration in trade, investment, and financial integration. He suggested initiatives such as joint ventures, technology transfer, and capacity-building programs that could offer shared advantages to all member states.

Acknowledging the increasing significance of the digital economy, he presented Pakistan’s digital financial projects designed to promote inclusion and broaden access to capital. He highlighted programs like Roshan Digital Accounts and digital banking platforms, which have had considerable success in expanding access to financial services.

The finance minister emphasized the necessity for shared solutions to tackle major issues such as the global economic slowdown, increasing economic inequalities, the growing wave of protectionism, and climate change, and he advocated for the adoption of sustainable development that benefits all member states.

“Pakistan believes that SCO member states can benefit from each other’s experiences and best practices in addressing these challenges in the global south,” he stated.

The Senator emphasized the significance of infrastructure development and regional connectivity in boosting economic growth and supported initiatives to enhance transport, energy, and digital connectivity in the region.

The minister reiterated Pakistan’s strong support for the establishment of the SCO Development Bank, characterizing it as a crucial institution for supporting infrastructure financing, promoting development, and deepening regional economic integration.

He envisioned the Bank as forward-thinking, integrating digital finance, fintech innovation, and green financing tools into its operations.

“We are eager to engage in the technical details regarding the establishment of the SCO Development Bank,” he said.

The finance minister also welcomed the operationalization of the SCO Network of Financial Think Tanks, expressing hope that it would serve as an “excellent platform for research, analysis, and strategic foresight in our financial cooperation.”

In conclusion, the finance minister restated Pakistan’s commitment to enhancing economic cooperation within the SCO framework. “We believe that our collective endeavours will promote economic prosperity, stability, and sustainable development in our region,” he concluded.