Islamabad, Pakistan – Web Desk: Finance Minister Muhammad Aurangzeb has said Pakistan expects to see economic improvement by 2027 following the end of the Iran-related conflict, noting that the war had significantly impacted inflation, energy infrastructure, and fiscal stability.
In an interview with an international news agency, Finance Minister Muhammad Aurangzeb said that the country is now focusing on medium-term recovery as it manages the economic fallout from regional instability.
He said Pakistan’s defence expenditure has been increased by 18 percent, reaching around PKR 3 trillion, reflecting ongoing security and strategic requirements.
Aurangzeb noted that the Iran conflict had damaged energy infrastructure and pushed inflation back into double digits, adding pressure on Pakistan’s macroeconomic outlook.
He said the government is relying heavily on tax revenue growth to sustain its IMF programme, adding that any immediate budget adjustments would be premature.
The minister also confirmed Pakistan’s plan to raise funds through international markets, including Panda bonds, Eurobonds, and US dollar bonds. He estimated around USD 2.82 billion in commercial and Eurobond financing in the next fiscal year, along with approval for a USD 1 billion Panda bond issuance.
He further stated that the government plans to regulate cryptocurrency, tokenisation, and digital asset exchanges before introducing taxation measures in the sector.
Officials say these steps are part of broader economic reforms aimed at stabilising public finances, attracting foreign investment, and modernising Pakistan’s financial system amid global uncertainty.
