Adviser to the Finance Minister Khurram Schehzad has said the government is anchoring its long-term economic agenda on sustained macroeconomic stability, comprehensive structural reforms and private-sector-led growth.

Addressing a seminar titled “Pakistan Economic Outlook: Fiscal Year 2027 and Beyond” in Lahore, he said Pakistan's economy has witnessed significant improvement over the past two to three years, with real GDP growth recovering to 3.7 percent, supported by expansion in agriculture, large-scale manufacturing and the services sector.

He said the fiscal deficit has been contained to less than one percent of GDP over a nine-month period, while the total debt-to-GDP ratio has declined from 75 percent to 68 percent, reflecting a disciplined fiscal trajectory.

Khurram Schehzad said the current account deficit has been contained to less than 150 million dollars, compared to 17.5 billion dollars in 2022, while headline inflation has decelerated to 7.5 percent.

He said the State Bank of Pakistan's foreign exchange reserves have increased from three billion dollars in early 2023 to 18 billion dollars, providing over three months of import cover.

He added that this reserve accumulation has been achieved primarily through organic inflows rather than external debt accumulation.

Highlighting structural reforms, the Adviser said the government has initiated 28 privatization transactions, including the successful bidding process for Pakistan International Airlines, while privatization efforts for First Women Bank, House Building Finance Corporation and power distribution companies are also underway.

The Adviser said the government is finalizing a Comprehensive Industrial Policy and a Medium-Term Tax Policy to strengthen manufacturing competitiveness and provide long-term policy predictability for investors.

He said the government is also expanding the Benazir Income Support Programme to protect vulnerable segments during the economic transition, adding that sustainable job creation and structural poverty reduction depend on facilitating private enterprise, improving industrial efficiency and maintaining consistent macroeconomic policy execution.