Finance Minister Vows to Reset Pakistan’s Business Climate in Talks with US Investors

Finance Minister Senator Muhammad Aurangzeb on Thursday signaled a renewed push to reset Pakistan’s business climate and restore investor confidence during high-level talks with American corporate leaders, as the government prepares key economic and tax reforms ahead of the upcoming federal budget.

The Finance Minister held a meeting with a delegation of the American Business Forum (ABF), led by its President Osman Khalid Waheed, at the Finance Division to discuss economic reforms, investment prospects, and measures aimed at improving ease of doing business in Pakistan.

Welcoming the delegation, Aurangzeb briefed participants on Pakistan’s improving macroeconomic outlook, highlighting progress in fiscal consolidation, external account stability, and constructive engagement with international financial institutions and development partners.

He noted that despite global uncertainty and regional challenges, the government remains committed to maintaining macroeconomic stability while accelerating structural reforms to support sustainable economic growth.

The Minister also outlined ongoing government efforts to address energy sector bottlenecks, strengthen supply chains, and improve coordination among ministries through a high-level committee chaired by him. He emphasized that authorities are closely monitoring economic developments and remain actively engaged with both domestic and international stakeholders to safeguard stability.

Members of the American Business Forum welcomed the government’s reform agenda and presented a range of proposals to improve Pakistan’s business environment. Discussions focused on tax policy rationalization, reducing compliance burdens, export incentives, and facilitating foreign exchange inflows. Business leaders stressed that predictable and consistent policies are essential to attract long-term investment.

Sector-specific issues were also discussed during the meeting. Representatives from the pharmaceutical industry highlighted the sector’s strong export potential, stating that exports could expand from roughly USD 1 billion to between USD 3 billion and USD 5 billion through regulatory reforms alone, without requiring fiscal subsidies. They emphasized the need for modernized regulations and consistent pricing mechanisms.

Participants from the IT and services sectors underscored the importance of facilitating foreign exchange retention and incentivizing export-led growth. Stakeholders also raised concerns regarding digital payments, corporate card usage, and taxation of cross-border transactions, calling for streamlined procedures to accelerate digitalization and improve ease of doing business.

The delegation further shared proposals related to tax structure, incentives, and administrative processes, while highlighting the need for continued reforms in customs and tax administration, stronger digital systems, and improved procedural efficiency.

Aurangzeb welcomed the input from the business community and reiterated the government’s commitment to building a business-friendly environment. He assured participants that several proposals are already under active consideration and indicated that the upcoming federal budget would reflect a clear direction toward tax rationalization and regulatory reform.

The Finance Minister said policymaking is being aligned with broader economic value creation, focusing on export promotion, investment attraction, and long-term sustainability. He also highlighted ongoing efforts to separate tax policy formulation from revenue collection functions to enhance transparency and efficiency.

Both sides agreed to maintain close engagement and continue dialogue to support Pakistan’s economic transformation and attract increased foreign investment. Aurangzeb invited the Forum to submit further actionable proposals, particularly in light of emerging regional opportunities, to help position Pakistan as a competitive investment destination.

The delegation included senior representatives from leading multinational and domestic companies, including Osman Khalid Waheed (CEO, Ferozsons Laboratories Limited; President, ABF), Dr. Mazhar Qureshi (Country CEO, Stewart Pakistan), Ahmad Irfan Khan (CEO, Jockey Pakistan), Vaseem Anvar (CEO, ECHO West), Dr. Faisal Hashmi (Director, Coca-Cola Pakistan), Khurram Shah (Director, PepsiCo), Usman Ashraf (CEO, Hardee’s MDS Foods), Malik Bajwa (CEO, Bajco Group), Sohail Nisar (Director, Millat Tractors Limited), Ayesha Haq (Executive Director, Pharma Bureau, representing Abbott Pakistan Limited), and Robert Newsome.