ISLAMABAD: Two key members of the federal cabinet adopted differing stances regarding Pakistan’s economic growth during the ninth edition of the Leaders in Islamabad Business Summit 2026 held on Thursday. While the Prime Minister’s Advisor on Privatization linked improved governance directly to high economic growth, the Finance Minister reiterated the necessity of maintaining policy continuity focused on fiscal stabilization.
Finance Minister Muhammad Aurangzeb and Advisor on Privatization Muhammad Ali presented contrasting views on the timing and pace of economic expansion.
Highlighting the imperative for rapid expansion, Muhammad Ali stated, “Until we achieve growth, we cannot improve governance.” His stance emerged just minutes after the Finance Minister advocated for sticking to stabilization policies—measures that have kept the country’s economic growth below 4% since 2022.
Adding to the governance discussion, Minister of State for Finance Bilal Azhar Kayani remarked that the administrative system must perform better, noting that citizens are forced to wait outside government offices and stand in queues for hours hoping for solutions to basic, legitimate issues.
Addressing the summit virtually, Finance Minister Muhammad Aurangzeb emphasized that maintaining economic stability on a permanent basis is vital for Pakistan’s economic future. He stressed that strong fiscal and external buffers are essential to withstand internal and external economic shocks.
However, Muhammad Ali countered that stabilization is not the ultimate destination, asserting that growth is the primary objective. He argued that the economic growth rate must significantly surpass the population growth rate.
While both government representatives agreed that Pakistan’s economic model should not rely on consumption-led growth, Muhammad Ali stressed that restoring investor confidence is critical to initiating growth.
The Finance Minister outlined that Pakistan’s growth path must be gradually shaped through exports, investment, and productivity enhancements. He stated that the Pakistani economy is currently in a better position and that the recovery process will continue into the ongoing fiscal year, aiming to transition from consumption-driven cycles toward a sustainable model led by exports and investment.
Conversely, Azfar Ahsan, Chairman of the Nutshell Group, offered a critical perspective, stating that while economic stability has been achieved, it remains fragile, alleging that the government is essentially managing decline effectively.
It is worth noting that just a few days prior, as Chairman of the Cabinet Committee on State-Owned Enterprises, the Finance Minister approved exemptions from International Financial Reporting Standards (IFRS)—a move that experts warn could conceal financial risks, particularly within energy sector enterprises.
Touching upon geopolitical risks, Muhammad Aurangzeb warned that escalating tensions in the Middle East could impact domestic growth and inflation. He assured that the country holds sufficient fuel reserves through the end of October, while the National Coordination and Management Council is actively working to secure fuel supplies for November.
Given the potential second- and third-tier ripple effects of regional conflicts, the Finance Minister concluded that maintaining strict fiscal discipline has become more critical than ever.
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