KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday highlighted Pakistan’s policy of trade and economic liberalization during an interview with an American news channel, saying that combined with the ongoing reform momentum, these policies could generate an “East Asia moment.”
Aurangzeb, currently in Washington D.C. to attend the World Bank and International Monetary Fund annual meetings, spoke to CNBC about Pakistan’s improving macroeconomic indicators and the government’s focus on structural transformation to sustain growth and stability.
Speaking about the overall global trade dynamics, the finance minister said Pakistan’s economic focus was shifting away from protectionism.
“We cannot continue to shield industries which have received protection for the longest time,” he said, adding that if Pakistan has to grow, “it has to have industries which are competitive and which can export.”
He noted that macroeconomic stability and structural reforms must go hand in hand, citing progress in taxation, energy, privatization of state-owned enterprises and public finance management as integral to the government’s reform agenda.
Pakistan began implementing stringent economic reforms after finding itself on the verge of default in mid-2023.
The country’s performance has also been recognized by all three major global rating agencies, which have upgraded Pakistan’s outlook in recent months, a validation of what Aurangzeb described as the country’s improving “economic trajectory and reform agenda.”
“We feel this can be an ‘East Asia moment’ for Pakistan in terms of liberalizing the economy,” he said, drawing a broader perspective on the country’s reform path.
He also acknowledged the strong partnership with the United States and commended the World Bank Group for supporting Pakistan’s reform efforts, reaffirming the government’s commitment to sustaining implementation and positioning the country on a “sustainable, outward-looking growth path.”
