Business
Aurangzeb highlights Pakistan’s strategic shift to restore economic confidence
Finance Minister Muhammad Aurangzeb underscored Pakistan’s strategic shift from seeking aid-based support towards trade- and investment-led engagement to ensure long-term economic sustainability and mutually beneficial partnerships, particularly with the Gulf Cooperation Council (GCC) countries.
In an interview with CNN Business Arabia, Aurangzeb highlighted the vision of Prime Minister Shehbaz Sharif, which reflected Pakistan’s renewed economic confidence and reform momentum.
He said that Pakistan has followed a comprehensive macroeconomic stabilisation program for the past 18 months, which has delivered tangible and measurable results, while inflation has declined to single-digit levels from an unprecedented 38%.
On the fiscal front, Pakistan has achieved primary surpluses, while the current account deficit remains well within targeted limits. According to the finance czar, the exchange rate has also stabilised, and foreign exchange reserves have improved to approximately 2.5 months of import cover, reflecting strengthening external buffers.
He maintained that the country has two major external validations, which indicate Pakistan’s improving economic outlook.
Firstly, he said, all three international credit rating agencies have aligned their assessments this year by upgrading Pakistan’s ratings and outlook. On the other hand, the country has completed the second review under the IMF Extended Fund Facility, with the IMF Executive Board granting its approval earlier this week.
He stated that such developments demonstrate growing international confidence in Pakistan’s economic management and reform trajectory.
The finance minister further emphasised that macroeconomic stabilisation has been achieved through a coordinated approach combining disciplined monetary and fiscal policies with an ambitious structural reform agenda.
“Reforms are being implemented across key areas, including taxation, energy, state-owned enterprises, public financial management, and privatisation, aimed at consolidating stability and laying the foundation for sustainable growth,” Aurangzeb said.
The finance minister also highlighted the significant progress in Pakistan’s improvement of the tax-to-GDP ratio.
“During the last fiscal year, it increased to 10.3 per cent, with a clear path towards 11 per cent,” the finance minister said.
He further explained the government’s objective to reach a level of tax collection that ensures fiscal sustainability over the medium to long term.
“This is being pursued through widening the tax base by bringing previously undertaxed but economically significant sectors such as real estate, agriculture, and wholesale and retail trade into the formal net, alongside deepening compliance by reducing leakages through production monitoring systems and AI-enabled technologies. Simultaneously, the tax administration is being transformed through reforms in people, processes, and technology,” he said.
The minister further highlighted efforts to improve governance in [power] distribution companies, involve private sector expertise, advance privatisation, and reduce circular debt, which has long constrained the power sector.
“Rationalising the tariff regime is essential to making energy more competitive for industry, thereby enabling industrial revival and economic growth,” he stressed.
Senator Aurangzeb acknowledged the longstanding support of GCC countries, including Saudi Arabia, the United Arab Emirates, and Qatar, for their critical role in critical role supporting Pakistan through financing, funding, and cooperation at international financial institutions such as the International Monetary Fund.
“This relationship is now evolving towards a new phase centred on trade expansion and investment flows. Remittances continue to play a vital role in supporting the current account, with inflows reaching approximately $38 billion last year and projected to rise to $41-42 billion this year, over half of which originates from GCC countries,” he added.
He further said, “Pakistan is actively engaging with GCC partners to attract investment in priority sectors including energy, oil and gas, minerals and mining, artificial intelligence, digital infrastructure, pharmaceuticals, and agriculture.”
Expressing optimism regarding progress on a Free Trade Agreement (FTA) with the GCC, he termed the discussions at an “advanced stage”.
Senator Aurangzeb reiterated the government’s strategic direction in shifting the collective focus on trade rather than relying on aid.
“Pakistan’s future lies in fostering trade and investment partnerships rather than reliance on aid,” said the finance minister.
He also emphasised the role of foreign direct investment in supporting the higher GDP growth, generating employment opportunities, and delivering shared economic benefits for Pakistan and its partners.
“The government is fully mobilised to translate this vision into reality.” He concluded.
Business
Policy rate cut too meagre to address major challenges, industry leaders complain
Business
Centre asks provinces to ‘fully implement’ interim wheat policy
• Food minister says provinces must maintain strategic wheat reserves in line with population
• Senate panel informed strict monitoring prevented crop failures
• Lawmakers concerned over research gap, point out lack of efforts to boost donkey farming
ISLAMABAD: The federal government has asked provincial governments to fully implement the interim national wheat policy 2025-26 within their respective jurisdictions to safeguard the rights of wheat farmers and flour consumers.
The advice came at the conclusion of the first meeting of the National Wheat Oversight Committee formed under the interim wheat policy, chaired by Minister for National Food Security and Research Rana Tanveer Hussain, in Islamabad on Monday.
At the same time, the minister emphasised that all provincial governments must maintain strategic wheat reserves in accordance with their population requirements to ensure food security. It may be noted that the interim policy remains under wraps, but a few weeks ago, the government shared a new roadmap for wheat procurement.
In September this year, the federal government unveiled the ‘National Wheat Policy and Wheat Management Strategy’ for 2025-26 to serve as a long-term plan to ensure food security, safeguard farmers’ livelihoods, protect consumers and build resilience against market disruptions and climate-induced emergencies. At the time, the food minister had said the wheat policy would be finalised and adopted after comprehensive consultations with all stakeholders.
Food minister says provinces must maintain strategic wheat reserves in line with population
During the meeting on Monday, Mr Tanveer highlighted the strategic importance of wheat in meeting the country’s food requirements and emphasised the need for increasing wheat cultivation to ensure national food security. Detailed deliberations were held on the procurement mechanism for the upcoming wheat crop in line with the policy’s objectives.
He also stressed the importance of including the private sector in the wheat value chain to create new business opportunities and generate employment, particularly for the youth. The meeting was attended by provincial and regional secretaries of food and agriculture, along with senior officials from relevant departments.
Senators briefed on crop monitoring
Separately, the Senate Standing Committee on National Food Security and Research was informed on Monday that due to strict monitoring mechanisms, Pakistan did not face any major wheat or rice crop failure caused by diseases, such as yellow rust.
The committee reviewed the latest research undertaken by scientists at the Pakistan Agricultural Research Council and the National Agricultural Research Centre regarding newly evolved seed varieties and assessed the progress of the Green Pakistan Initiative (GPI), with particular emphasis on the livestock sector.
About 1,500 wheat lines and 500 rice lines are regularly monitored under the Crop Diseases Research Institute (CDRI) to prevent the spread of crop diseases under the mechanism developed by the Pakistan Agricultural Research Council and the National Agricultural Research Centre. The standing committee was briefed about these initiatives during its visit to the National Agriculture Research Centre (NARC).
At the research centre, the committee members were apprised of the functioning of various scientific laboratories and research institutions. A comprehensive briefing was given on the functions, mandate, and working of PARC and NARC.
The committee visited the NARC and received briefings on the functioning of various scientific laboratories and research institutions. During the visit to the Land Resource Research Institute, the committee was briefed on bio-fertilisers and training initiatives being undertaken by NARC to enable farmers to produce bio-fertilisers independently.
The committee appreciated the wheat and pulses speed breeding facilities but expressed concern over the widening research gap due to climate change. Committee Chairman Senator Syed Masroor Ahsan directed PARC to focus on promoting smart agricultural practices and developing climate-resilient seed varieties.
Emphasising the promotion of smart agriculture, fisheries development, and bridging the gap between research and farmers, the committee chairman directed the authorities to intensify efforts towards national development and economic strengthening through agricultural and livestock research and development. Mr Ahsan further stressed that each and every media source should be used to create awareness among the farmers so that they may benefit from the latest research.
The committee highlighted that although agriculture was a devolved subject after the 18th Amendment, effective coordination between the federation and provinces in the agriculture and livestock sectors was essential.
The committee also received a comprehensive briefing on the GPI, particularly focusing on the livestock sector. Members were briefed on initiatives, including animal tagging and the establishment of model animal markets. It was informed that Pakistan was the “third-largest milk producer” in the world.The committee raised questions regarding donkey farming initiatives for meat and skin exports and pointed out the lack of organised efforts to develop this sector.
Published in Dawn, December 16th, 2025
Business
Businesses panic as transporters’ strike ‘cripples’ supply chains
KARACHI: Businessmen fear economic activity in the port city and the province will come to a standstill and local production will shut down due to a nine-day-old cargo transporters’ strike, which has disrupted the movement of goods across the province.
Representatives of multiple business bodies urged the Sindh government to intervene and address the situation stemming from the strike, which has a crippling impact on industrial production and supply chains.
In a letter to the Sindh chief minister, Overseas Investors Chambers of Commerce Industry (OICCI) Secretary General Abdul Aleem said the situation was a very serious concern for the industry and commerce in the country.
He said he had raised this matter on Dec 12 with the Punjab and Sindh chief secretaries, but it partially eased the situation in Punjab only. However, the situation in Sindh and Karachi port, inward and outward movement of goods, has remained unchanged, he added.
“Many of our members have reported that trucks from Punjab are still unable to enter Karachi and port operations have also been severely constrained, and several major manufacturing facilities are now at imminent risk of shutdown,” he informed the Sindh CM.
Sindh CM urged to intervene to address issue as cargo unions announce nationwide boycott on 19th
“One OICCI member reported production lines shutdown this morning, with some others anticipating closures between tomorrow (Tuesday) and Wednesday,” he said, adding that “OICCI members further report that essential raw materials and finished goods are stranded across highways”.
According to Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan, the supply of edible oil, ghee and essential daily-use commodities has been affected, while the transportation of industrial raw materials has come to a halt.
Mr Rehan warned the suspension of raw material supplies could paralyse the production process, leading to severe repercussions for the economy. He said the delivery of imported goods had come to a complete standstill, resulting in consignments being stuck at ports and exposing businesses to substantial financial losses in the form of demurrage and detention charges.
Pakistan Association of Large Steel Producers General Secretary Wajid Bukhari said the goods transporters’ strike had a crippling impact on industrial production and supply chains. Prolonged disruption could result in layoffs, wage losses for workers, and long-term damage to Pakistan’s industrial credibility, he feared.
He urged the federal and provincial governments to engage in talks with the transporters, review the Motor Vehicle Ordinance 2025, and adopt a balanced approach that ensured road safety without paralysing the industry and production.
The current wave of protests by transporters began in response to the enforcement of the Motor Vehicle Ordinance 2025 on Dec 8, under which traffic authorities imposed increased fines, strict penalties, vehicle impoundment, and FIRs against drivers and transport operators. Transport unions argue that the ordinance has been implemented without adequate consultation and has made routine transport operations financially unviable.
While negotiations temporarily eased tensions in some areas of Punjab on Dec 13, major transport bodies, including the All Pakistan Transport Federation and allied goods transport associations, have now announced a nationwide wheel-jam strike on Dec 19 after expressing dissatisfaction with government assurances.
Transport leaders have warned that unless controversial clauses of the ordinance are withdrawn or substantially revised, goods and passenger transport across the country will remain suspended.
Published in Dawn, December 16th, 2025
-
Tech2 weeks ago
Sendy Audio Introduces New Egret Planar Magnetic Headphones With Ultra-Thin Membrane
-
Entertainment2 weeks ago
Nadia Afgan on Working with Nauman Ijaz & Playing Characters Like Rubi
-
Business2 weeks ago
Kremlin says decline in India’s imports of Russian oil may be temporary
-
Tech2 weeks ago
Redmi Note 15 Series Global Specs and Prices Leak Ahead of Launch
-
Entertainment2 weeks ago
Kya Drama Hai Under Fire For Targeting Talha Chahour’s Punjabi Accent
-
Entertainment2 weeks ago
Rabeeca Khan Mother’s Bridal Looks On Daughter’s Wedding Ignite Backlash
-
Sports2 weeks ago
Australia’s Cummins, Inglis in frame for second Ashes Test
-
Entertainment2 weeks ago
Natasha Baig’s Take on Nadia Khan’s Downfall