Pakistan to achieve around 4% economic growth this FY

Published Date: April 16, 2026

Published On: Radio Pakistan

Finance Minister Muhammad Aurangzeb says Pakistan is actively engaged in advancing diplomatic efforts aimed at sustaining the ceasefire and paving the way for further negotiations between the United States and Iran.

He said this during his appearance on “Mornings with Maria” on Fox Business Network at the IMF-World Bank Spring Meetings 2026 in Washington DC.

Muhammad Aurangzeb said Prime Minister Shehbaz Sharif is undertaking intensive regional outreach and continued coordination in this regard. He emphasized that these efforts reflect Pakistan’s constructive role in promoting regional and global stability.

The interview followed host Maria Bartiromo’s recent conversation with US President Donald Trump, during which he appreciated the Pakistani leadership for its role in facilitating dialogue between the United States and Iran. Opening the discussion with a clip from that interview, Maria Bartiromo referred to Pakistan’s ongoing diplomatic engagement and invited the Finance Minister to share his perspective.

On the economic front, Muhammad Aurangzeb outlined the impact of the ongoing conflict in the Middle East, noting that Pakistan is currently managing its first-order effects, including challenges related to energy procurement, pricing, and logistics. He said the government’s immediate focus has been on maintaining supply chain continuity, while the extent of second and third-order impacts on inflation, growth, and the external sector would depend on the duration and intensity of the conflict.

The Finance Minister highlighted that Pakistan’s macroeconomic indicators remain stable, supported by strengthened fiscal and external buffers. He noted that remittances have remained robust, reaching approximately 3.8 billion dollars last month, while the country has also recorded a current account surplus. He expressed confidence that Pakistan would achieve around four percent economic growth in the current fiscal year and meet its fiscal and external sector targets, including maintaining foreign exchange reserves at a level equivalent to approximately three months of import cover.

Reaffirming the government’s commitment to financial discipline, Muhammad Aurangzeb noted that Pakistan has successfully repaid its 1.4 billion dollar Eurobond on time. He appreciated the timely financial support extended by Saudi Arabia, including three billion dollars in additional deposits and the extension of existing ones, which will further strengthen Pakistan’s external position.

The Finance Minister also outlined Pakistan’s forward-looking financing strategy, including plans to access international capital markets. He said the government is preparing for its inaugural Panda Bond issuance, alongside exploring Eurobond and other commercial financing avenues to diversify funding sources and sustain investor confidence.