KARACHI, Pakistan – Web Desk: Federal Finance Minister Muhammad Aurangzeb announced that the government is actively pursuing the privatization of an additional 28 state-owned enterprises (SOEs), as part of its broader economic reform agenda. Speaking at the inauguration of the Pakistan Banking Summit 2026, organized by the Pakistan Banks Association, the Finance Minister detailed the country’s macroeconomic achievements and outlined key policy priorities .
Aurangzeb stated that the previous fiscal year concluded with robust economic stability, with GDP growth recorded at 3.7 percent, driven by large-scale manufacturing growth . He highlighted that the current account remained stable during FY26 due to strong remittance inflows, which are estimated at $41-42 billion for the fiscal year . The State Bank of Pakistan’s foreign exchange reserves surged to $18.4 billion, and Pakistan regained access to international capital markets, including Eurobonds, with Panda Bonds holding significant importance .
The Finance Minister noted that 11 IPOs were launched on the Pakistan Stock Exchange in the past fiscal year, with new investors, particularly Gen Z, showing interest in the equity market. In response to the 2025 floods, Pakistan managed the devastation using domestic resources without seeking international aid, unlike in 2022.
On fiscal reforms, Aurangzeb announced the abolition of the super tax on businesses with annual turnover below Rs500 million, a move aimed at supporting small enterprises. The construction sector received relief, while duties on agricultural machinery were reduced to zero. The government is expanding the tax net by bringing the retail sector into the system and is eliminating human intervention in the tax system through technology, aligning with recent government directions to launch an AI-driven, faceless tax administration system to improve transparency and public trust . “With a population like Pakistan’s, everyone must pay reasonable taxes,” he stated, adding that “human interaction in the tax system is being eliminated through technological advancement.”
The minister also addressed the maritime sector, emphasizing the need to expand transshipment capabilities. He noted that Roshan Digital Account inflows have increased from $180 million to $300 million monthly over the past three months.
SME and Banking Sector: Aurangzeb stressed that SMEs must not be limited to statements but require concrete access to capital. While large businesses are welcome, the budget allocates a dedicated share for SMEs. He emphasized fiscal discipline and urged non-banking financial institutions to step forward. The State Bank of Pakistan has already issued NoCs to exchange companies for virtual assets, blockchain, and AI in December 2025, with commercial banks now playing a key role in ensuring cybersecurity .
PBA Chairman Zafar Masud highlighted the banking industry’s contributions, noting it is Pakistan’s largest taxpayer, contributing over Rs1,000 billion annually . The banking sector extended Rs2,400 billion in loans to clear circular debt and Rs300 billion for PIA privatization. He also reported that SME financing growth reached 111 percent in borrowers and 80 percent in value over the past year, while agricultural loans grew 39 percent and housing loans 90 percent .
Trade with Iran: Speaking to media, Aurangzeb confirmed that trade with Iran is in its early stages post-conflict, with hope for significant progress. He emphasized the importance of strengthening ties with brotherly Islamic countries.
