Finance Minister Muhammad Aurangzeb on Monday said Pakistan’s economy has stabilized and is moving onto a growth trajectory as foreign exchange reserves strengthen and investor confidence shows signs of recovery.
Speaking during a meeting with Saudi Finance Minister Mohammed Aljadaan on the sidelines of the World Economic Forum Annual Meeting 2026 in Davos, Aurangzeb briefed his counterpart on recent macroeconomic developments and reform measures.
The finance minister said Pakistan’s foreign exchange reserves now provide an import cover of around three months, reflecting improved macroeconomic stability. He added that economic growth stood at 3.1 percent last year and accelerated to 3.7 percent in the first quarter of the current fiscal year.
Aurangzeb said interest rates have started to ease, while stressing that monetary policy decisions remain the exclusive mandate of the State Bank of Pakistan. He reiterated the government’s focus on maintaining a sustainable current account alongside steady GDP growth.
Highlighting renewed market confidence, the finance minister said sixteen initial public offerings are currently in the pipeline, following nine IPOs completed last year. He added that more than 120,000 new investors have entered Pakistan’s capital market.
He said remittances continue to play a key role in economic stability, with inflows expected to rise from $38 billion last year to over $41 billion this year. Growth in IT services, he added, is also contributing positively to the current account.
Aurangzeb briefed the Saudi minister on efforts to attract foreign direct investment in priority sectors, including minerals and mining, agriculture, and export-oriented industries.
On privatisation, he said the government has concluded key transactions in recent months, including a digital-sector investment from the United Arab Emirates, while progress is also underway on Pakistan International Airlines. He said the government plans to proceed with the phased privatisation of selected state-owned enterprises, including power distribution companies and major airports in Islamabad, Lahore, and Karachi.
The finance minister said the Privatisation Commission is operating under clear direction and institutional oversight to ensure a transparent and structured process.
Saudi Finance Minister Mohammed Aljadaan welcomed Pakistan’s recent economic progress and shared Saudi Arabia’s experience with privatisation, citing airport reforms as a successful example.
Both sides reaffirmed their commitment to strengthening economic cooperation between Pakistan and Saudi Arabia.