{
  "id": 14729720,
  "title": "Pakistan targets 4% growth in FY27 as reforms gather pace: Aurangzeb",
  "url": "https://urgent.news/2026/10/15/pakistan-targets-4-growth-in-fy27-as-reforms-gather-pace-aurangzeb",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-15T15:47:46.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40444400/pakistan-targets-4-growth-in-fy27-as-reforms-gather-pace-aurangzeb"
  },
  "original_language": "en",
  "account": "Pakistan projects a 4% growth rate for the fiscal year 2026-27, driven by a resurgence in industry and agriculture, according to Finance Minister Muhammad Aurangzeb. Speaking to Michael Kugelman of the Atlantic Council prior to the IMF-World Bank Annual Meetings in Bangkok, Aurangzeb explained that the country's GDP expanded by 3.7% in fiscal year 2026 compared to 3.2% in the previous year. The State Bank of Pakistan anticipates growth between 3.5% and 4.5% for the current fiscal year, primarily due to a revival in large-scale manufacturing and robust livestock performance. The government is closely monitoring the effects of ongoing Middle East conflict on inflation and economic growth, recognizing that external shocks affected activity in the final quarter of the prior fiscal year. Aurangzeb noted that Pakistan's twin deficits dropped from 12.5% of GDP to 2.6% over the last three years, and foreign exchange reserves have improved. The government expects the current account balance to stay between zero and 1% of GDP. Aurangzeb emphasized a shift towards sustainable, investment- and export-led growth, avoiding the boom-and-bust cycles of the past that inflated import demand and created balance-of-payments pressures. The government has implemented measures to boost export competitiveness, such as reducing tax burdens on exporters, lowering the cost of imported goods, and providing subsidized financing. IT export services generated $4.6 billion in the previous fiscal year, with a projected $5.5 billion for FY27. Tax revenues have risen by 40% over the past two fiscal years, and the tax-to-GDP ratio has grown to about 10.3% from less than 9% at the start of the reform process. The government is focusing on tax administration improvements through integrated databases and AI-driven assessments and audits. In terms of privatisation, Aurangzeb highlighted the government's progress in privatizing power distribution companies and outsourcing airports, with further opportunities involving financial institutions on the horizon. Domestic investors have shown confidence in the reform agenda, with Turkish firms currently conducting due diligence for the power distribution companies to be privatized. Aurangzeb also addressed poverty alleviation, announcing a Rs838 billion allocation to the Benazir Income Support Programme (BISP) and planning for increased cash assistance under the Kafaalat program. Additionally, nearly Rs80 billion has been disbursed for affordable housing, and the banking system has approved Rs430 billion. The government is expanding targeted fuel subsidies and shifting social assistance payments to digital wallets for enhanced transparency and reduced leakages. On external financing, Aurangzeb disclosed that Pakistan secured a Panda bond issuance from China at a 2.5% interest rate and returned to the Eurobond market in September. The government aims to diversify financing sources, replace costly external debt, and extend debt maturities rather than increasing the total external debt stock. Aurangzeb also shared that Pakistan would assume the chairmanship of the G-24 on November 1, positioning the country to address concerns of developing economies in international financial architecture discussions.",
  "summary": "Pakistan expects its economy to grow around 4% in fiscal year 2026-27, supported by a recovery in industry and agriculture, as the government seeks to move beyond macroeconomic stabilisation towards sustainable, investment- and export-led growth, Finance Minister Muhammad Aurangzeb has said. Speaking with Michael Kugelman of the Atlantic Council on the sidelines of the IMF-World Bank Annual…",
  "key_points": [
    "Pakistan aims for 4% growth in FY27, driven by industry and agriculture revival.",
    "Finance Minister Aurangzeb reports 3.7% GDP growth in FY26, up from 3.2% in FY25.",
    "Government focuses on sustainable export-led growth, tax reforms, and poverty alleviation."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}