ISLAMABAD (MNN); Finance Minister Muhammad Aurangzeb stated on Sunday that the latest International Monetary Fund (IMF) report highlighting weaknesses in Pakistan’s financial system should not be seen as criticism, but rather as an opportunity and a driving force for long-delayed structural reforms.
The IMF report, released as part of the prerequisites for approving the next $1.2 billion tranche scheduled for December, pointed to systemic flaws affecting Pakistan’s economic performance. The document flagged institutional inefficiencies, limited transparency in state operations, preferential treatment for certain business sectors, and poor management of public-sector enterprises as major barriers to sustainable growth.
It proposed a series of targeted reforms to be implemented over the coming three to six months, aimed at raising the growth rate to 5 to 6.5 per cent within the next five years.
Opposition parties seized on the report, terming it the biggest financial failure in Pakistan’s history and demanding investigations.
However, Aurangzeb clarified during a press briefing in Islamabad that the evaluation had been initiated by the government to strengthen accountability and institutional performance. He added that the report also acknowledged positive progress in taxation, governance and policy restructuring.
According to Aurangzeb, several reform measures suggested by the IMF are already under way, while the remaining steps will be incorporated into a broader institutional reform program. He stressed that Pakistan’s economic challenges did not emerge overnight but developed over decades, and durable reforms are necessary for long-term stability.
The finance minister described the IMF document as a turning point that could accelerate structural improvements rather than undermine the government’s progress. He said the economic policy direction now focuses on inclusive growth led by the private sector, along with export-driven development.
Aurangzeb highlighted the removal of the Export Development Surcharge (EDS), in effect since 1991, identifying it as a pivotal move to make Pakistani exports more competitive.
He added that reforms related to the Export Development Fund were designed to strengthen governance, eliminate policy distortions, and give greater autonomy to exporters. The cabinet is set to approve the decision, after which implementation will formally begin.
Sharing performance figures, the minister stated that the country’s exports had increased by approximately five per cent, while IT-related service exports had surged above twenty per cent.
He described the IT sector, minerals and mining as core pillars of Pakistan’s new economic path. He also mentioned the $3.5 billion financing for the Reko Diq project, led by IFC, adding that the mine could generate around three billion dollars annually in exports once fully operational.
Remittances, he noted, were another major strength of the economy, rising from thirty-eight billion dollars last year and projected to exceed forty-one billion dollars this year. The anticipated three-billion-dollar increase will help Pakistan manage its current account more effectively in the coming months.
Discussing long-term trade policy, Aurangzeb emphasised the need for a restructured tariff system that supports raw material access and reduces over-protection of industries.
He said Pakistan could only become globally competitive by gradually phasing out long-standing protective barriers, enabling domestic industries to grow through efficiency and productivity rather than policy shielding.
The minister concluded by stressing sustained reforms, consistent export policy, empowering of high-potential sectors, and the need to rebuild investor confidence through transparency and continuity in economic decisions.
