Finance Minister links privatization, PPPs to lasting economic stability

Finance Minister Senator Muhammad Aurangzeb told an Asian Development Bank dialogue on PPPs and privatisation that private capital raised through these routes is needed to move Pakistan from stabilisation to investment-led growth, according to Mettis Global. He warned against returning to the boom-and-bust pattern of earlier years. He described the core task as turning hard-won macroeconomic stability into lasting growth driven by an empowered private sector.

On the economy, he said the twin deficit narrowed to 2.6% during the last two and a half years, helped by technology-driven FBR reforms and spending controls. FBR revenue has climbed 40% in two years, with the tax-to-GDP ratio moving from 8.8% to 10.3%, though he said it must reach 11 to 12% in the near term. Reserves were $18.4bn on June 30, and the government targets $21bn by year end, which would cover just over three months of imports.

Senator Aurangzeb also cited three sovereign credit rating upgrades since April 2025, which he linked to the country regaining access to international bond markets. He argued that dependence on banks for borrowing cannot continue, calling for deeper debt markets and a wider investor base that draws in insurers and NBFIs. Retail buyers can now enter government securities with Rs5,000 through a JazzCash tie-up and an SBP application, while a rupee-denominated, dollar-settled bond is in progress and Eurobond tokenization is under review.