Aurangzeb rules out consumption-led growth, says tariff reforms will continue

Finance Minister Muhammad Aurangzeb said Pakistan would not pursue growth driven by easy liquidity and household spending, Dawn reported on Saturday. Speaking at Lahore University of Management Sciences, he backed an export-focused approach and said tariff changes would proceed, including efforts to lower exporters’ costs for imported inputs. He argued that shielding local producers indefinitely had made the existing protection model unsustainable.

Aurangzeb said the combined fiscal and external gaps had eased from 12.5pc of GDP to 2.6pc at the close of the previous fiscal year. He also cited a current-account shortfall of about 0.1pc of GDP, IT export services of $4.6bn and foreign reserves covering more than three months of imports. The minister said tariff, tax, energy and financing changes were needed to support exports, investment and employment, while noting that energy supplies had been secured through November.