Finance Minister Muhammad Aurangzeb says Pakistan has made meaningful progress in restoring stability through disciplined macroeconomic policies, institutional reforms and proactive debt management.
He made the remarks at a high-level roundtable on “Addressing Sovereign Debt Vulnerabilities” at the AlUla Conference for Emerging Market Economies 2026, jointly organized by Saudi Arabia and International Monetary Fund.
The Finance Minister said Pakistan has remained on track to contain and better manage public debt. He said our efforts have contributed to a decline in the debt-to-GDP ratio to around 70 percent from about 74 percent over the past three years.
Muhammad Aurangzeb also highlighted progress in domestic resource mobilization, noting that Pakistan has raised its tax-to-GDP ratio, which is now moving around 12 percent from single-digit levels in earlier years, supported by tax reforms, digitization, and base-broadening measures.
In addition, the Finance Minister also drew attention to Pakistan’s efforts to align debt management with climate and development objectives, including the issuance of a Green Sukuk and the establishment of a Sovereign Sustainable Financing Framework.
