ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Friday held a key meeting with a delegation of leading investors and businessmen from the United Arab Emirates (UAE) and shared with them various investment opportunities in Pakistan, an official said.
The delegation, led by Mohamed Baradei, Group CIO of the Abu Dhabi-based EIX global investment and strategic advisory firm, was briefed on the state of Pakistan’s economy and the wide-ranging structural reforms undertaken recently, according to Finance Adviser Khurram Schehzad.
Aurangzeb highlighted the achievement of a primary surplus after many years, the return of inflation to single digits, stable currency, robust foreign exchange reserves and validation from leading international rating agencies which are now aligned in their improved assessment of Pakistan’s economy.
The development comes as Pakistan, currently bolstered by a $7 billion International Monetary Fund (IMF) program, continues to make efforts to boost trade and foreign investment as it treads a long path to sustainable economic growth.
“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,” Schehzad said on X.
“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.”
The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE’s foreign ministry.
Policymakers in Pakistan consider the Emirates an optimal export destination due to their geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
Both countries have stepped up efforts in recent years to strengthen their economic relations. In Jan. 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure.
Aurangzeb noted while Pakistan’s exports and remittances were “healthy,” the country’s stock exchange has been witnessing unprecedented activity, with over 70,000 new investors entering the market that reflected the growing confidence among both domestic and foreign investors.
He 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 digital and export promotion policies indicate the government’s future trajectory of reforms.
“[The visiting UAE delegation] 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,” Schehzad said.
“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 great importance to its partnership with the UAE and hoped that the momentum generated by this engagement will translate into concrete investments and joint ventures, further strengthening economic bonds between the two nations.
