FM Aurangzeb Rejects Consumption-Led Growth for Pakistan

News Desk

LAHORE: Finance Minister Muhammad Aurangzeb has firmly ruled out the pursuit of liquidity-fuelled, consumption-led economic growth, emphasizing the need for Pakistan to focus on sustainable, export-led expansion.

Speaking at the Lahore University of Management Sciences (LUMS) on Saturday, he highlighted the importance of continuing tariff reforms to enhance the competitiveness of the country’s industries.

Aurangzeb stated that Pakistan cannot afford to repeat the cycle of import-dependent growth that has historically led to balance-of-payments crises and necessitated support from international lenders.

He reiterated the government’s commitment to tariff reforms aimed at reducing costs for exporters, despite concerns regarding the timing of these measures.

“We are very clear: no matter how much pressure there is, we are not going to go for liquidity-fuelled, consumption-led growth,” Aurangzeb asserted.

He stressed the need to avoid a temporary surge in economic activity that could culminate in another balance-of-payments crisis, underscoring the importance of a stable economic direction.

Looking ahead, the government plans to continue its focus on export-led growth strategies and tariff reforms, which are expected to be discussed in upcoming economic forums.

These measures are crucial for stabilizing the economy and ensuring long-term growth, as Pakistan navigates its current financial challenges.