ISLAMABAD – Federal Finance and Revenue Minister Senator Muhammad Aurangzeb on Monday said that due to improved export performance, the economy is now operating with a surplus in both fiscal and current accounts. Foreign exchange reserves have crossed the $12 billion mark, inflation has been brought down to single digits, and the policy rate is moving in the right direction, he said in a meeting with a high-level delegation of foreign investors and business professionals, mostly based in the United States.
The delegation put together by Ambassador Ali Jehangir Siddiqui of the JS Bank comprised leading entrepreneurs, business practitioners and professionals from diverse sectors, including technology, academia, and finance, with lead members such as Mr Auren Hoffman, Chief Executive Officer of SafeGraph, Mr Kristen Edwards Marqua (Hakluyt & Company), Michael Levi (The DE Shaw Group), Dr Jeff Chang (Rad AI), and others.
Ambassadar Ali Jehangir Siddiqui opened the discussion by apprising the finance minister about the composition of the delegation, the purpose of their visit and their interaction with different stakeholders during the visit so far. Advisor to the Finance Minister Khurram Shehzad and senior officers of the Finance Division and FBR were also present. The finance minister welcomed the delegation and briefed them about the country’s recent macroeconomic progress. He further elaborated on the government’s comprehensive reform agenda, encompassing privatisation, SOE restructuring, rightsizing of the federal government, and pension reforms.
Senator Aurangzeb also addressed two existential challenges faced by Pakistan: rapid population growth and climate change. “With a population growth rate exceeding 2 percent, we face severe implications for food security, child stunting, and out-of-school children. Climate change exacerbates these vulnerabilities, making it imperative to secure both financial and technical assistance to tackle these issues effectively,” he remarked. He also mentioned that he has emphasised the importance of these priorities in discussions with international partners, including World Bank President Ajay Banga.
The briefing was followed by a detailed question-and-answer session. Addressing a query on implementing IMF conditions and structural reforms, the minister remarked, “The willingness and ability to execute reforms are crucial. While we have significant work ahead, as long as we maintain commitment and momentum, and stay the course, we will achieve the desired outcomes.” Responding to another question, he stressed the role of the private sector in driving economic growth. “Policy frameworks and continuity are the government’s responsibility, but the private sector must lead the economy. The government’s focus is on creating an enabling environment to support this transition,” he stated.
The delegation appreciated the government’s efforts in stabilising the economy and discussed opportunities for collaboration in areas such as innovation, investment, and financial inclusion. The meeting concluded with a shared resolve to strengthen US—Pakistan cooperation in achieving mutual economic goals and addressing shared challenges. Earlier, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb reiterated the government’s resolve to support initiatives that foster inclusive growth, sustainable development, and community welfare while empowering the private sector to take the lead in driving meaningful social impact.
The minister chaired a meeting of the Prime Minister’s Committee on Social Impact Financing at the Finance Division on Monday. The session focused on advancing innovative financial solutions to drive social impact, enhance financial inclusion, and uplift marginalised communities in Pakistan. The meeting brought together a diverse group of stakeholders from the public and private sectors, both in person and virtually, including Minister of State for Finance and Revenue Ali Parvez, governor State Bank of Pakistan, chairman SECP, president Pakistan Banks’ Association, MD Pakistan Bait-ul-Mal, MD State Life Insurance Corporation, Kamran Shams (CEO, Akhuwat Foundation), Dr Waqas Ul Hassan (CEO, Karandaaz Pakistan), Dr Fatima Khushnood (CEO, Pakistan Environment Trust), Hamed Yaqoob Sheikh (Team Leader, FCDO REMIT Programme), Shahid Aziz (CEO, Interloop Asset Management), Rashid Bajwa (CEO, National Rural Support Programme), and Secretaries of Social Sector and Poverty Alleviation Division, Law and Justice Division, Finance Division, alongwith senior officers from relevant ministries and departments.
The finance minister highlighted the government’s role in establishing a robust policy and regulatory framework for social impact financing, emphasising that the private sector would lead implementation efforts. “The private sector has already been doing an outstanding job in this domain, and we must focus on creating an enabling environment rather than establishing yet another government institution. This aligns with the government’s rightsizing objectives,” he said. He further stressed the importance of moving beyond charity to broader impact financing. “Transparency from philanthropy to the end beneficiaries is essential. Digital solutions must be integrated to ensure efficient systems, while accountability and impact evaluation will build trust and credibility among stakeholders,” he added.
The discussions centered on key priorities:
1. Developing a policy and regulatory framework to connect philanthropic contributions, including Sadaqaat and Zakat, with the underserved segments of society.
2. Mobilising philanthropic capital to achieve tangible and sustainable social outcomes.
3. Addressing legal, financial, and regulatory challenges to create an enabling environment for impact financing.
4. Enhancing financial inclusion while adhering to religious principles.
5. Identifying and mitigating risks to safeguard social impact investments.
6. Promoting digitalisation and impact evaluation to strengthen accountability mechanisms.
The participants shared insights on blended financing models, public-private partnerships, and fostering microfinance initiatives. Proposals were made to ensure a comprehensive regulatory framework that encourages private sector innovation and safeguards investments.
The finance minister appreciated the commitment and contributions of all stakeholders and directed accelerated efforts to finalise the proposed policy framework. He reiterated the government’s resolve to support initiatives that foster inclusive growth, sustainable development, and community welfare while empowering the private sector to take the lead in driving meaningful social impact.
