Aurangzeb outlines reform drive, pushes export-led growth at Harvard moot

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Monday highlighted Pakistan’s economic reform agenda, stressing the need for structural changes and export-led growth while speaking at a high-level discussion hosted by Harvard University.

Participating in a panel titled “Pakistan’s Economic Agenda: Stability, Reform and What Comes Next” during the Pakistan Conference 2026, the minister outlined key policy priorities aimed at ensuring long-term stability and sustainable growth.

The session, moderated by former State Bank governor Dr Reza Baqir, featured prominent economists including Professor Atif Mian of Princeton University and Nobel laureate Professor Daron Acemoglu of the Massachusetts Institute of Technology. It brought together policymakers, academics, and members of the Pakistani diaspora to examine the country’s economic outlook.

Aurangzeb described the ongoing Middle East conflict as a major global supply shock, noting that Pakistan’s immediate focus had been to maintain uninterrupted energy supplies despite limited reserves. He said the government initially introduced blanket subsidies to shield consumers from rising costs, later shifting to targeted support in line with fiscal constraints.

He maintained that Pakistan had managed the situation comparatively well, avoiding major supply disruptions or law and order issues.

On the external front, the minister pointed to strong debt management, describing the recent Eurobond repayment as a “non-event,” and expressed confidence in meeting upcoming obligations.

Highlighting emerging opportunities, he noted a surge in transit trade through Karachi Port, surpassing last year’s volumes within weeks, alongside progress in operationalising Gwadar Port. He also cited record inflows under the Roshan Digital Account initiative as a sign of growing confidence among overseas Pakistanis.

However, Aurangzeb cautioned that remittances alone cannot sustain long-term growth, emphasising the need to boost exports and expand trade in services.

Reflecting on reform challenges, he said Pakistan has long understood the need for economic reforms, but implementation and timely decision-making remain key hurdles, contributing to repeated reliance on IMF programmes.

He reaffirmed the government’s commitment to reforms, including broadening the tax base, improving tax administration, and raising the tax-to-GDP ratio. Efforts are underway to modernise the Federal Board of Revenue through digitisation and automation to enhance transparency and efficiency.

The minister also called for moving away from subsidy-driven industrial support toward competitiveness, highlighting recent tariff rationalisation measures aimed at integrating Pakistan into global markets.

On energy, he noted that solar power generation has reached around 8,000 megawatts, helping cushion the economy against external shocks, with plans to expand renewable capacity further.

Aurangzeb cited key reform milestones, including agriculture income tax legislation passed by all four provinces and progress on privatisation and restructuring of state-owned enterprises, with 28 entities referred to the Privatisation Commission.

Looking ahead, he identified population growth and climate change as major long-term challenges, stressing the need for policy focus on sustainability and resilience.

He also acknowledged the need for further improvements in regulatory frameworks and ease of doing business to attract investment.

The discussion underscored Pakistan’s efforts to engage with global stakeholders and reinforce its commitment to transparency, reform, and economic stability.