Aurangzeb eyes sustainable export-driven growth

Dawn reported that Finance Minister Muhammad Aurangzeb, speaking at a Monday event in Islamabad, called for growth that lasts, driven by private enterprise and shipments abroad. He spoke while two agreements were signed: a reinsurance deal between Pak EXIM Bank and the Islamic Corporation for Insurance of Investment and Export Credit, and a Rs3 billion risk pool for small and medium enterprises run by the bank and the Export Development Fund. The minister described both as a step toward putting the export strategy into practice.

The minister said Pakistan had shifted from stabilisation to growth, yet the principal test now is keeping that expansion going. According to him, the economy expanded by around 3.7 per cent in FY26, and officials aim to lift the rate above 4pc in the current year. He also argued that the country can no longer tolerate cycles of booms followed by busts linked to heavy reliance on imports and balance of payments strain.

Measures cited included cutting super tax to nil for firms shipping over 80pc of what they produce, scrapping advance tax, and taking steps to make energy costs more competitive. Aurangzeb also said exporters can now obtain financing at 4.5pc, and that Exim Bank has a key role in passing on budget-enabled export refinance. The minister added that diversifying shipments across products, services and markets remains necessary, and that partnerships like the ICIEC arrangement can bring overseas expertise in credit and political-risk cover.