Growth, stability divide cabinet

According to The Express Tribune, Finance Minister Muhammad Aurangzeb and Privatisation Adviser Muhammad Ali offered differing views on growth at the 9th Leaders in Islamabad Business Summit 2026 on Thursday. Ali linked weak governance to the need for faster expansion, saying growth had to rise before governance could improve. Aurangzeb, who addressed the session virtually, instead stressed that fiscal stabilisation policies must continue, with strong buffers to absorb shocks.

Ali cited GDP growth of 3.7% in the last fiscal year, compared with population growth estimated at 2.6%, a gap he said was driving unemployment and poverty. The finance minister, however, pointed to State Bank of Pakistan projections of GDP growth between 3.5% and 4.5% for the current fiscal year. Both officials agreed that the growth model should shift away from consumption-led cycles toward exports and investment.

Aurangzeb said foreign exchange reserves rose to $21.3 billion, a record, aided by $3 billion from Eurobonds. The previous record stood at $20.2 billion, yet the government plans to repay $3 billion of short-term Saudi debt next month, which could make the higher level temporary. Aurangzeb also flagged the Middle East escalation as a risk to growth and inflation, noting fuel reserves last until the end of October. He said the National Coordination and Management Council was working to secure fuel supplies for November.