Key Takeaways
- Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with the Pakistan Business Council in Karachi.
- The meeting focused on economic reforms, policy continuity, and the Government's budget preparation process.
- The Finance Minister emphasized the importance of a stable tax policy framework to support business confidence.
Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with members of the Pakistan Business Council (PBC) in Karachi. The discussion centered on economic reforms, policy continuity, and the Government's budget preparation process.
During the meeting, Senator Muhammad Aurangzeb appreciated the PBC for bringing together leading representatives of Pakistan’s business community. He acknowledged the council’s role in promoting constructive dialogue between the government and the private sector on key economic and policy issues.
Senator Muhammad Aurangzeb observed that the global economy had demonstrated greater resilience than anticipated, with countries committed to structural reforms better positioned to sustain economic stability and growth. He emphasized Pakistan's need to continue its reform agenda to strengthen macroeconomic stability, improve competitiveness, and support sustainable economic growth.
Highlighting the Government’s approach to budget preparation, Senator Muhammad Aurangzeb noted that the meeting marked the beginning of consultations for the next federal budget rather than a post-budget review. The Finance Minister stated that the government had initiated the budget preparation process significantly earlier this year, enabling a more structured and consultative approach to fiscal planning.
The Finance Minister also emphasized that the Federal Budget 2026–27 introduced significant taxation and financing measures aimed at supporting exports, improving exporters' access to finance, and reinforcing the Government's commitment to an export-led and sustainable growth model. He underscored the importance of policy predictability and reaffirmed the government’s commitment to implementing a Medium-Term Tax Strategy.
During the meeting, representatives of the Pakistan Business Council highlighted the council’s role as a broad-based national business advocacy platform. They underscored the importance of continued engagement between the Government and exporters from various sectors to support export-led growth. The Finance Minister reaffirmed the government's commitment to advancing structural reforms, ensuring policy consistency, and fostering a conducive environment for investment and sustainable economic growth.
In another development, Senator Muhammad Aurangzeb spoke at the second edition of Pakistan Banking Summit 2026, where he highlighted that the current account performance remains strong due to record remittance flows. He expected overall remittances for the year to close between $41 and $42 billion.
The finance minister also addressed the last fiscal year's metrics, including a primary surplus, an all-time low fiscal deficit, a debt-to-GDP ratio well below 70 percent, and GDP growth closing at 3.7 percent on the back of a strong rebound in LSM (Labour Market Survey). He noted that while there was a dip in exports, it was concentrated on the food side, with value-added sectors like textiles continuing to register year-on-year growth.
Regarding foreign exchange reserves, Senator Muhammad Aurangzeb said they would close at about $18.4 billion for this fiscal year, higher than earlier estimates. He also discussed the importance of tapping into the second largest and deepest capital market through Panda Bonds and expressed regret for not having done so in previous years.
We do expect our overall remittances for this year to close anywhere between $41 and $42 billion.
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue
The meeting marked the beginning of consultations for the next federal budget rather than a post-budget review.
Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue
