Finance Minister Muhammad Aurangzeb announced on Tuesday that the government is aiming to prepare the upcoming federal budget for fiscal year 2025-26 as a “strategic document” specifically designed to align fiscal priorities with the broader objective of achieving sustainable, export-driven growth for the country.
Consultation with Business Leaders
The Finance Minister made these remarks during a meeting in Islamabad with a group of prominent exporters and businessmen, led by Shabbir Diwan, former Chairman of the Pakistan Business Council (PBC). According to a statement released by the Finance Division, the meeting was part of the government’s ongoing consultative process with key stakeholders from the business and industrial community in preparation for the budget, which is scheduled to be presented on June 2.
Export-Led Growth: The ‘Only Viable Path’
During the discussion, Mr. Aurangzeb underscored the critical importance of export-led growth, stating unequivocally that it is “not just a priority—it is the only viable path forward for Pakistan’s economic stability and sustainability.”
He stressed that all sectors of the economy must contribute to this effort. The Minister highlighted that increased productivity and the adoption of outward-looking policies are essential for Pakistan to break free from recurring boom-and-bust economic cycles and avoid the need for what would be a 25th program from the International Monetary Fund (IMF).
Ending Protectionism and Addressing Structural Hurdles
The Finance Minister reiterated the government’s resolve to dismantle the existing protectionist regime to foster market-based competitiveness. “The era of unnecessary protection must come to an end,” he stated, adding that the Prime Minister is personally chairing meetings to drive this significant policy shift.
Furthermore, he identified key structural bottlenecks hindering the local industry’s competitiveness and potential for export-led growth. These include high financing costs, elevated energy tariffs, and an overly complex tax regime. Resolving these issues, he noted, is essential for boosting productivity and enabling industry to lead the country towards export expansion. The discussion also touched upon the government’s Tariff Rationalisation Program, aimed at removing anomalies that complicate business operations.
Shabbir Diwan welcomed the government’s stated efforts and shared perspectives from the private sector regarding the importance of improving policy consistency and predictability to facilitate business planning and investment.
Minister Aurangzeb assured the business representatives that all stakeholder inputs received during these consultations would be carefully considered in shaping the next phase of economic reforms. He emphasized the crucial role of public-private collaboration in building a resilient, productive, and globally integrated economic framework for Pakistan.
