Finance Minister Muhammad Aurangzeb said Pakistan has incorporated potential geopolitical and external risks into its economic planning and fiscal framework for FY2026-27, while noting that improved regional stability following the recent understanding between the United States and Iran could support investment, trade, and broader economic activity.
The remarks came during a meeting with Hamish Falconer, MP and the United Kingdom’s Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan (MENAP), at the Finance Division on Tuesday.
Falconer was accompanied by British High Commissioner Jane Marriott, along with other officials from the British High Commission. Senior officials from Pakistan’s Finance Division also attended the meeting.
The two sides held detailed discussions on regional developments, Pakistan’s economic outlook, ongoing structural reforms, fiscal priorities, institutional modernisation, and opportunities to deepen economic cooperation between Pakistan and the United Kingdom.
Aurangzeb briefed the visiting delegation on the government’s reform agenda and highlighted the key priorities outlined in the Federal Budget 2026-27. He reiterated the government’s commitment to maintaining macroeconomic stability, sustaining economic recovery, advancing structural reforms, and fostering inclusive and long-term growth.
During the meeting, the finance minister referred to recent regional developments, including the easing of tensions following the understanding reached between the United States and Iran.
He reaffirmed Pakistan’s support for dialogue, de-escalation, and peaceful conflict resolution, noting that the country had consistently advocated efforts to reduce regional tensions.
Aurangzeb observed that prolonged instability in the region can affect economic confidence, energy markets, supply chains, and growth prospects, particularly for emerging economies.
He said the government’s economic planning and budget assumptions had taken into account possible geopolitical and external risks, including indirect impacts arising from regional uncertainty, while emphasising that greater stability would provide a more supportive environment for investment and trade.
The finance minister also outlined Pakistan’s ongoing fiscal and institutional reforms, including efforts to enhance revenue mobilisation, improve compliance, reduce leakages, and modernise tax administration through technology, data integration, centralised processing systems, and digital invoicing.
He stressed that the reform programme is designed not only to strengthen revenue collection but also to improve transparency, reduce discretionary interventions, and rebuild trust between citizens, businesses, and public institutions.
The discussion also covered broader structural reforms, including privatisation, rightsizing of public-sector entities, improving expenditure efficiency, expanding digital governance, and strengthening targeted social protection programmes.
Aurangzeb highlighted progress toward technology-driven public service delivery and more efficient utilisation of public resources.
Hamish Falconer welcomed the government’s commitment to economic reform and acknowledged the scope and seriousness of Pakistan’s transformation agenda.
He underscored the importance of sustained implementation of reforms, stronger institutions, and continued efforts to improve economic competitiveness and governance. He also reaffirmed the United Kingdom’s interest in maintaining engagement and cooperation with Pakistan in areas of shared economic interest.
Both sides reiterated their commitment to strengthening Pakistan–United Kingdom cooperation and maintaining close engagement to support sustainable economic growth, institutional development, and regional stability.
