Pakistan has reached a staff-level agreement at the International Monetary Fund (IMF) for the second review of its loan, with the board expected to approve the next tranche in early December, Finance Minister Muhammad Aurangzeb said on Wednesday. Speaking at the ninth Future Summit in Karachi, he highlighted the government’s shift towards an investment-driven economic model, led primarily by the private sector.
Aurangzeb said investor confidence was growing, adding: “Our direction is the right one.” He confirmed that Google had decided to open an office in Pakistan and considered the country as an export hub. A blockchain center has also been established at the Lahore University of Management Sciences (LUMS) as part of a broader approach focusing on emerging technologies.
The minister said tax reforms had progressed steadily over the 18 months, with ongoing efforts to broaden the tax base using artificial intelligence. “The sugar sector is now digitalized, and the cigarette sector will follow,” he said, adding that 900,000 new filers had been registered.
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He also noted Egypt’s interest in adopting Pakistan’s reform model, while the privatization of Pakistan International Airlines (PIA) was on track to be completed by the end of the year. The UAE’s recent investment in a Pakistani bank marked “the beginning of a new era”, Aurangzeb said.
Meanwhile, Federal Minister Musadik Malik stressed the need to ensure equal opportunities and fair competition in Pakistan’s economic landscape. Addressing the same summit, he said sustainable development depended on breaking elite domination and fostering a competitive, innovation-driven economy.
“The aspirations of our young people are simple,” Malik said. “They want good jobs, safe neighborhoods and basic services. » He argued that macroeconomic figures such as GDP growth were of little importance to the average Pakistani, who was more concerned about education, healthcare, pollution and urban flooding.
Malik warned that environmental challenges, including smog in Lahore and flooding in Karachi, were reducing life expectancy by up to eight years. “The butterflies and fireflies are gone; everything is ruined,” he said, calling for urgent reforms in health, education and local governance. He highlighted high unemployment among young doctors and a lack of primary health care facilities, saying global models showed such problems could be addressed.
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The minister said that innovation requires competition and that protectionist policies and preferential access to energy for certain sectors hinder exports and foreign investment. “If the elite dominates society, how will businesses grow? » he asked, calling for an end to politics based on privilege.
Both Aurangzeb and Malik emphasized that Pakistan’s future economic resilience depends on competitiveness, youth empowerment and effective use of external finance, including for climate resilience. Both stressed the importance of focusing on emerging sectors, technology and innovation to build a sustainable and inclusive economic model.
