Boston-Web Desk: Pakistan’s Finance Minister Muhammad Aurangzeb has said the country effectively managed economic pressures despite the ongoing Middle East crisis, describing the conflict as a major global supply shock.
Speaking at a high-level panel discussion at Harvard University, Aurangzeb highlighted Pakistan’s efforts to maintain energy supply continuity during the الأزمة, while gradually shifting towards targeted subsidies after an initial relief phase.
He noted that Pakistan successfully navigated external financial obligations, stating that recent Eurobond repayments were a “non-event,” reflecting improved confidence in the country’s external account stability.
Aurangzeb also pointed to a record increase in transit traffic at Karachi Port and strong inflows under the Roshan Digital Account initiative, particularly in March.
However, he emphasized that remittances alone are not a sustainable long-term solution and stressed the need to boost exports as a core pillar of economic growth.
The finance minister underscored ongoing structural reforms, including improvements in the tax system and efforts to raise the tax-to-GDP ratio. He said digitization and automation are being implemented within the Federal Board of Revenue to enhance efficiency and transparency.
He further noted that the government is moving away from blanket industrial subsidies towards a more competitive economic model, alongside tariff reforms and deeper integration into global markets.
On the energy front, Aurangzeb revealed that solar power generation in Pakistan has reached 8,000 megawatts, with plans to expand the share of renewable energy in the national mix.
Additionally, legislation on agricultural income tax has been completed across all four provinces, while 28 state-owned enterprises have been handed over to the Privatization Commission Pakistan for potential privatization.
He concluded by identifying population growth and climate change as key long-term challenges, reaffirming the government’s commitment to improving the business environment and sustaining economic reforms.
