Lahore (TDI): Federal Minister of Finance, Muhammad Aurangzeb highlighted the critical need to stay committed to the reform agenda to drive Pakistan’s economic recovery and growth.
He spoke virtually at the meeting of the Private Sector Dialogue on “Leveraging Private Capital for CPEC II and the Region.”
The Minister outlined key areas for reforms, including taxation, energy, state-owned enterprises, and privatization.
The dialogue was organized by the Pakistan Regional Economic Forum (PREF) in partnership with the Embassy of China.
Pakistan’s Macroeconomic Stability
The partnership brought together experts to discuss the future of private sector involvement in the China-Pakistan Economic Corridor (CPEC) Phase II. Minister Aurangzeb mentioned the importance of macroeconomic stability.
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He noted that foreign exchange reserves have now increased to cover more than two months of imports, inflation has eased, and the policy rate is on a downward trajectory.
The Minister explained the government’s approach to foreign borrowing, stressing that recent bids were rejected to demonstrate Pakistan’s financial strength.
He stated, “Pakistan is under no desperation to borrow. If we need to borrow, it will be on our terms.”
CPEC II and Private Sector’s Role in Economic Growth
Moreover, the Minister urged the banking sector to step up and increase lending to the private sector. He reiterated the government’s focus on attracting foreign direct investment (FDI) as pivotal to sustainable economic development.
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Securing approval for a $7 billion International Monetary Fund (IMF) underpins structural reforms that are aimed at long-term economic stability.
The Finance Minister added the significance of CPEC Phase II. It will shift focus from infrastructure development to monetization with the private sector.
Private Sector plays a leading role. He applauded PREF’s approach of fostering private sector-led regional projects and transactions to maximize the benefits of CPEC.
Strengthening China Pakistan Cooperation
Chinese Ambassador to Pakistan, Jiang Zaidong echoed the Minister’s sentiments. He emphasized the need to bolster confidence in Pakistan’s developmental potential.
Ambassador Zaidong stressed the importance of strengthening and expanding China-Pakistan collaboration, especially in agriculture and energy.
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The dialogue concluded with participants discussing collaborative opportunities and projects in key sectors. These sectors are climate-smart agriculture, energy transition, value-added textiles, and emerging technologies.
