FinMin calls for making Pakistan export hub in CPEC Phase 2 as he attended a high level panel discussion at the WEF 2025.
Chinese firms are set to be encouraged to relocate their production facilities to Pakistan, positioning the country as an export hub under phase 2 of the China–Pakistan Economic Corridor (CPEC).
This announcement was made by Finance Minister Senator Muhammad Aurangzeb during a high-level panel discussion at the World Economic Forum (WEF), focusing on the growing debt challenges faced by developing economies.
According to a press release, the finance minister highlighted that the second phase of CPEC would prioritize business-to-business partnerships over the earlier government-to-government model.
He also outlined Pakistan’s intention to access global capital markets, including through the issuance of Panda Bonds, inspired by Egypt’s diversification strategy in financial markets. Improving the country’s credit ratings is a key goal.
Senator Aurangzeb stressed the importance of the private sector, particularly in IT, in driving economic growth and creating opportunities for Pakistan’s youth.
Addressing challenges like population growth, poverty, and environmental concerns, he noted that Pakistan is working toward sustainable development through a 10-year partnership program with the World Bank.
The minister emphasized stabilizing the economy by shifting toward an export-driven model and implementing structural reforms to address fiscal deficits. He highlighted Pakistan’s efforts to increase its tax-to-GDP ratio from the current 9-10% to 13%, crucial for achieving financial stability and gaining international respect.
Aurangzeb also pointed out that Pakistan’s debt-to-GDP ratio had dropped from 78% to 67%, and he advocated for effective debt utilization to boost productivity and exports instead of covering expenses or providing subsidies.
Acknowledging the volatility of Pakistan’s economic growth, he explained that reliance on imports triggers balance of payments crises whenever GDP growth reaches 4%, leading to repeated recourse to the IMF.
He reaffirmed Pakistan’s commitment to sustainable development and creating job opportunities for its youth. The government is working to foster private-sector-led job creation through consistent and sustainable policy frameworks.
The finance minister concluded by emphasizing the need to stabilize fiscal policies, reduce debt burdens, and create a resilient economy that provides opportunities for the country’s young population.
Related Posts
