Finance minister says country seeks export-driven growth to avoid boom-bust cycle

KARACHI: Finance Minister Muhammad Aurangzeb called for stronger alignment between the country’s banking sector and the government’s economic priorities, urging banks to support export-led and investment-driven growth to ensure long-term stability.

Chairing a high-level meeting on priority sector lending, Aurangzeb said the government is focused on facilitating foreign direct investment (FDI) and boosting exports, particularly in sectors that generate exportable surpluses. The session was attended by senior officials from the State Bank of Pakistan, the Pakistan Banks Association (PBA) and top commercial banks.

“Macroeconomic stability is a starting point, not the end goal,” Aurangzeb said, adding that Pakistan must avoid the cycle of short-term gains and long-term corrections. “We need sustainable, investment-led, and export-oriented growth -- not another boom-bust episode.”

He cited growing investor confidence, including Maersk Line’s $2 billion commitment to Pakistan’s port and maritime infrastructure, as a sign of progress. Aurangzeb said such investments reflect Pakistan’s emerging role in regional trade corridors and the need for the banking sector to capitalise on logistics, industrial growth and trade facilitation.

The minister also highlighted the government’s outreach to stakeholders ahead of the federal budget, including visits to chambers of commerce to gather proposals. The goal, he said, is to ensure budget-making is informed by on-the-ground realities.

During the session, PBA Chairperson Zafar Masud presented updates on banking sector support for agriculture, SMEs and technology. Key initiatives discussed included electronic warehouse receipt financing, SME performance indices, financial data exchange, housing finance, and schemes promoting energy and water efficiency.

Aurangzeb called for enhanced credit access for smallholder farmers using fintech tools such as embedded finance and remote sensing, and reiterated the need for cash-flow-based lending mechanisms without collateral.

The minister concluded with a call for coordinated efforts between the public and private sectors to maintain policy momentum and translate stability into structural transformation. “The government is committed to long-term reforms that promote investment and exports,” he said.