KARACHI: Finance Minister Muhammad Aurangzeb stressed the importance of continuity in economic policies, noting that consistency is essential regardless of which government is in power.
Addressing reporters on Saturday at the Overseas Investors Chamber of Commerce and Industry (OICCI), he said: “When we talk about the economic charter, it does not matter which administration will take over. The role of the government is the policy framework, but what is more important is the continuity of the policy.”
Aurangzeb noted that investment in the country is increasing and described the current level of investment as encouraging. He stressed the need to transform the Pakistani economy into an export-based model, stressing that “if we want economic growth, growth must be export-based.”
The Minister identified the import-based economy as a fundamental issue causing balance of payments problems and recurring boom-and-bust cycles.
He highlighted recent economic improvements, noting that $2.2 billion in dividends and profits previously withheld were repatriated between May and June. “We started with a clean slate this fiscal year,” he added.
The Finance Minister also called for the privatization of loss-making state-owned companies, noting that “the private sector must lead this country.” He said state-owned enterprises had incurred losses worth 6 trillion rupees over the past decade, at a cost of 2.2 billion rupees per day. “If the private sector manages it, our fiscal balance or imbalance will improve,” Aurangzeb said.
He pointed to the 2023 State-Owned Enterprises Policy, introduced under IMF directives, which requires the federal government to classify all state-owned enterprises into four groups to reduce their financial footprint. Relevant ministries are tasked with providing justifications for allocating SOEs to specific categories, including “strategic” or “core,” which are deemed too important for government policies and useless for private sector management.
In August, the Ministerial Committee on Privatization (CCOP) approved the privatization of 24 public sector entities under a phased program from 2024 to 2029. In September, the Ministerial Committee on State-Owned Enterprises decided to retain three public sector entities, the commercial enterprise category. of Pakistan (TCP), Small and Medium Enterprises Development Authority (Smeda), and National Shipping Corporation of Pakistan as “core” SOEs.
Planning Minister Ahsan Iqbal also reiterated the importance of consistent policies for economic growth, while the State Bank of Pakistan highlighted political uncertainties and political contradictions as key economic challenges.