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Pakistan Shifts From Stabilisation to Export‑Led Growth

This signals a push to lock in investor confidence by converting recent macro gains into export‑driven job growth before the IMF programme ends in October 2027.

Overview

  • The finance minister, speaking at a LUMS/ABF policy dialogue on Saturday, urged businesses to boost productivity and backed a policy pivot from macro stabilisation to export‑led, private‑sector‑driven growth.
  • He announced concrete support for exporters, including low‑cost loans at 4.5 percent and talks to supply surplus industrial electricity at about Rs23 per unit.
  • Officials say macro indicators have improved with foreign exchange reserves above three months of import cover and three credit‑rating upgrades since April 2025, supported by roughly $20 billion of central‑bank FX purchases and renewed bond sales.
  • The government plans targeted subsidies that have reached about 12 million unique beneficiaries, while setting IT export and remittance targets of roughly $5.5 billion and $44 billion respectively for the current fiscal year.
  • With Pakistan operating under a 37‑month IMF Extended Fund Facility that ends in October 2027, officials stress deeper tax, tariff and structural reforms to sustain investor confidence and create employment rather than return to consumption‑led cycles.