Islamabad – Finance Minister Highlights Pakistan’s Economic Reforms and Investment Opportunities in Meeting with UAE Business Leaders
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held an important meeting today with a group of leading UAE investors and businessmen led by Mr. Mohamed Baradei – Group CIO of the EIX, an Abu Dhabi-based global company specializing in investment and strategic advisory services.
Welcoming the delegation, the Minister expressed his appreciation for their visit to Pakistan and hoped that their interactions with government leaders, private sector representatives, and local investors had provided them with valuable insights into the country’s investment potential.
The Finance Minister briefed the delegation on the state of Pakistan’s economy and the wide-ranging structural reforms undertaken over the past one and a half years, emphasizing that the direction of travel was firmly positive across all macroeconomic indices. He highlighted the achievement of a primary surplus after many years, the return of inflation to single digits, stable currency, robust foreign exchange reserves, and external validation from leading international rating agencies which are now aligned in their improved assessment of Pakistan’s economy. Exports and remittances were described as healthy, while the Karachi Stock Exchange has been witnessing unprecedented activity, with over 70,000 new investors entering the market, reflecting growing confidence among both domestic and foreign investors.
Senator Aurangzeb underscored the government’s commitment to addressing investor concerns, noting that taxation reforms, tariff rationalization, privatization of state-owned enterprises, and a series of bold structural measures were aimed at fundamentally transforming the DNA of the economy. He informed the investors about promising opportunities in the mining sector, especially the Reko Diq project, which is expected to significantly strengthen Pakistan’s external sector through sustainable foreign inflows. He also shared updates on the government’s upcoming Industrial Policy, which will provide a roadmap for further improving the investment climate, and noted that bold tariff reforms and the launch of policies such as the digital and export promotion policies indicate the government’s future trajectory of reforms.
The Minister also spoke about efforts to widen and deepen the tax base beyond the manufacturing and salaried sectors by bringing services, wholesale, retail, and agriculture into the net, while simultaneously working to lower energy and financing costs for businesses. He highlighted ongoing privatization efforts, with major transactions including PIA and other state assets expected to proceed in the coming weeks and months. He noted that Pakistan was preparing to tap international capital markets through its first-ever Panda bond, while also planning future issuances in Euro and USD markets to further strengthen reserves.
Emphasizing Pakistan’s vulnerability to climate change, the Finance Minister stressed the need for climate adaptation projects, pointing out that financing from international institutions such as the IMF, World Bank, and ADB was available but required investable and bankable projects. He said Pakistan’s way forward lies in investment and export-led growth, with foreign investors such as those from the UAE playing a pivotal role alongside domestic businesses. He assured the delegation of the government’s full support in facilitating their investments in Pakistan.
The visiting UAE delegation reciprocated the warm sentiments, expressing gratitude for the hospitality extended to them and appreciation for the constructive interactions they had across government and business circles. They lauded the positive trajectory of Pakistan’s economy, the progress made on structural reforms, and the resilience demonstrated across key sectors. They expressed confidence in Pakistan’s potential, pointing to the state of its infrastructure, its demographic advantage, and the opportunities available for strategic and long-term investments. They emphasized that they brought not only capital but also strategic know-how to the table, and conveyed their strong interest in being ahead of the curve as Pakistan continues on its reform journey. The delegation also underscored that increasing capital and human flows between Pakistan and the UAE would contribute to deepening economic ties, noting that both countries were well positioned to grow together through mutually beneficial partnerships and collaborations.
The Finance Minister reaffirmed that Pakistan attaches the highest importance to its economic and investment partnership with the United Arab Emirates and stands fully committed to extending all possible facilitation to UAE investors. He expressed confidence that the strong momentum generated by this engagement will translate into concrete investments and joint ventures, further strengthening the economic bonds between the two brotherly nations.
