ISLAMABAD: Remittances to Pakistan are projected to grow to $41-43 billion in the current fiscal year, signaling increased confidence in the country’s economic outlook, Pakistan’s Finance Minister Muhammad Aurangzeb announced at the Pakistan Business Summit in Peshawar, the northwestern city of Pakistan.

Aurangzeb, while delivering the keynote address, reported a significant improvement in remittances, which reached $38 billion last year and are projected to grow to $41-43 billion in the current fiscal year, said a press release issued by the Press Information Department of Pakistan on Thursday.

The finance minister pointed out that Pakistan successfully repaid $500 million in Eurobond obligations in September without market disruption and is well-positioned to meet the upcoming $1.3 billion repayment in April 2026.

Private sector-led growth

In his remarks, the finance minister commended the organizers for convening a high-profile forum in Peshawar and underlined the government’s commitment to creating an enabling environment for the private sector to lead Pakistan’s economic growth.

He emphasized that the government’s role is to ensure macroeconomic stability, introduce structural reforms, and provide the right ecosystem for business and investment.

Forex reserves

Reviewing recent economic progress, Aurangzeb highlighted a sharp decline in financing costs following reductions in the policy rate, improved foreign exchange reserves that cover nearly three months of imports, and stability in the exchange rate.

He noted that these developments have strengthened investor confidence and facilitated the repatriation of dividends and profits.

Addressing structural reforms, Aurangzeb reaffirmed the government’s resolve to implement comprehensive tax reforms, separating tax policy from tax administration to restore credibility and consistency for investors.

He emphasized the ongoing reforms in state-owned enterprises, privatization efforts, and energy pricing as key components of the economic reform agenda.

Export-led growth

The finance minister also discussed Pakistan’s export-led growth strategy, tariff reforms aimed at reducing duties on raw materials and intermediate goods, as well as measures to attract efficient foreign direct investment (FDI).

He cited recent engagements in Beijing, Riyadh, Washington, and New York as evidence of renewed investor confidence, including the signing of 24 joint venture agreements with Chinese companies.

He further announced plans for Pakistan’s inaugural Panda Bond issuance before the end of the year, opening access to China’s deep capital markets.

Aurangzeb emphasized that Pakistan’s path to sustainable growth relies on enhanced competitiveness, private sector dynamism, and closer coordination between the federation and its provinces.

PKR4.3 trillion development budgets

He also emphasized the importance of prioritizing the effective utilization of the PKR4.3 trillion national development budget for infrastructure, health, and education.

Highlighting long-term challenges, the finance minister identified climate change and population growth as existential issues for Pakistan.

He emphasized the urgency of addressing child stunting, learning poverty, and climate resilience alongside economic recovery, noting that these factors directly affect Pakistan’s future productivity and leadership.

Concluding his address, Aurangzeb reaffirmed the government’s commitment to steering Pakistan towards sustainable economic recovery, global competitiveness, and resilience, while ensuring that reforms and growth translate into tangible benefits for the people of Pakistan.

The summit, organized under the patronage of the governor of Khyber Pakhtunkhwa, carried the theme “Shaping What’s Next” and brought together policymakers, business leaders, and corporate executives to discuss Pakistan’s economy, innovation, and global competitiveness.

Articles tagged with "Remittances"

Pakistan's remittances expected to grow to $43B in FY2025-26: Ministry of Finance