Finance Minister Muhammad Aurangzeb has expressed confidence that Pakistan’s economy will grow by over four percent during the current financial year.

Addressing an event organized by EXIM Bank in Islamabad today, he said the country is moving from stabilization towards growth. He noted that Pakistan recorded GDP growth of about 3.7 percent during the last fiscal year.

Muhammad Aurangzeb pointed out that the fiscal deficit is now at a 22-year low. He said the country recorded primary surpluses for the last three years, while it also posted a current account surplus last year. 

Referring to Pakistan’s recurring boom-and-bust cycles, the Finance Minister attributed them to the country’s dependence on imports. He said the main challenge is not achieving growth but ensuring that it is sustainable.

He emphasized that the government is focusing on export-led growth to ensure long-term economic sustainability.

Muhammad Aurangzeb said the government is focused on utilizing the available fiscal space to move the economy forward and promote export-led growth. He said that the budget provides clear direction and support for boosting exports.

Highlighting the need to diversify export base, the Finance Minister also supported subsidized financing for small and medium-sized enterprises (SMEs).