Pakistan's Economic Planning Mindful of Geopolitical Risks, FinMin Tells UK MP
Pakistan's Finance Minister Muhammad Aurangzeb stated on Tuesday that the government's economic planning accounts for potential external and geopolitical risks, including 'second-order impacts' from regional uncertainty. The remarks were made during a meeting in Islamabad with UK Parliamentary Under-Secretary of State Hamish Falconer MP. The discussion also covered Pakistan’s macroeconomic outlook, ongoing structural reforms, fiscal priorities, and opportunities to enhance Pakistan-United Kingdom economic cooperation. Aurangzeb briefed the UK delegation on the government's economic reform agenda, emphasizing efforts to preserve macroeconomic stability, accelerate structural reforms, and foster inclusive growth. Falconer acknowledged Pakistan's commitment to economic transformation and reaffirmed the UK's interest in continued engagement.
Finance Minister Muhammad Aurangzeb met with UK Parliamentary Under-Secretary of State for the Middle East, North Africa, Afghanistan and Pakistan (MENAP), Hamish Falconer MP, in Islamabad on Tuesday. British High Commissioner Jane Marriott and senior officials from both nations also attended the meeting at the Finance Division.
During the comprehensive exchange, Minister Aurangzeb informed the UK delegation that Pakistan's economic planning and fiscal assumptions consider possible external and geopolitical risks, including potential impacts from prolonged regional uncertainty. He highlighted that improved regional stability is crucial for investment, trade, and economic activity.
The Finance Minister also discussed recent regional developments, noting the easing of tensions between the United States and Iran. He reiterated Pakistan’s consistent support for dialogue, de-escalation, and peaceful conflict resolution, underscoring that prolonged regional instability affects economic confidence, energy markets, supply chains, and growth prospects for emerging economies.
Aurangzeb detailed Pakistan's ongoing fiscal and institutional reform efforts. These measures aim to improve revenue mobilization, strengthen compliance, reduce leakages, and modernize tax administration through technology, data integration, centralized processing, and digital invoicing. The reform agenda also seeks to enhance transparency, minimize discretionary intervention, and rebuild trust among citizens, businesses, and public institutions.
The discussion extended to broader structural reforms, including privatization, rightsizing public sector entities, improving public expenditure efficiency, and expanding digital governance and targeted social protection mechanisms. The minister shared progress in technology-enabled service delivery and more efficient allocation of public resources.
In response, Hamish Falconer appreciated the Pakistan government's commitment to economic reform, acknowledging the 'seriousness and breadth' of the nation's ongoing transformation agenda. He stressed the importance of sustained reform implementation, institutional strengthening, and continuous efforts to boost economic competitiveness and governance. Falconer reaffirmed the UK’s interest in continued engagement and cooperation in areas of mutual economic interest.
Both sides reiterated their commitment to maintaining close engagement and strengthening Pakistan-UK cooperation to support sustainable economic growth, institutional development, and regional stability.
(Source: Dawn Pakistan)
