Finance Minister Aurangzeb emphasised at the World Economic Forum in Davos that debt is not detrimental if it is directed toward productive investments, highlighting the country’s focus on fiscal reforms, export-driven growth, and climate resilience.
Speaking at a high-level panel in Davos, Aurangzeb emphasized that borrowing can be beneficial if directed toward projects that generate exportable surplus rather than consumption.
“For countries like Pakistan, debt must be channeled into investments that create long-term economic value,” he said, underlining the importance of fiscal discipline in emerging economies.
He underscored Pakistan’s recent economic achievements, including reducing the debt-to-GDP ratio from 75% to 70%, achieving a primary fiscal surplus, and bringing inflation down from 38% to single digits. The central bank has also cut the policy rate to 10.5%, signaling improved macroeconomic stability.
Mr Aurangzeb pointed to the Reko Diq copper project, expected to generate $2.8 billion in annual exports after 2028, as an example of productive investment. He also cited growth opportunities in IT, freelancing, and digital services, aligning with Pakistan’s pivot toward an export-driven economy.
The finance minister noted that public-private partnerships and capital markets, including Pakistan’s inaugural Panda bond—a green bond entering China’s capital markets—are playing a growing role in financing development.
Also read:PCB considers boycott following ICC’s rejection of Bangladesh request
