Finance Minister Aurangzeb Rejects Consumption-Led Growth for Pakistan

LAHORE: Finance Minister Muhammad Aurangzeb has firmly ruled out the pursuit of liquidity-fuelled, consumption-led economic growth, emphasizing the need for Pakistan to prioritize sustainable, export-led expansion. Speaking at the Lahore University of Management Sciences (LUMS) on Saturday, he highlighted the importance of ongoing tariff reforms to enhance the competitiveness of local industries.

Aurangzeb stated that Pakistan must avoid repeating the cycle of import-dependent growth that has historically led to balance-of-payments crises and necessitated reliance on 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 necessity of steering clear of temporary economic boosts that could culminate in another financial crisis.

Looking ahead, the government plans to continue its focus on export-led strategies, with further discussions on tariff reforms expected in upcoming economic forums. This approach aims to stabilize the economy and foster sustainable growth, ensuring that Pakistan’s industries can thrive in a competitive global market.