Federal Minister for Finance Muhammad Aurangzeb has said that Pakistan’s Free Trade Agreement (FTA) negotiations with the Gulf Cooperation Council (GCC) countries are in advanced stages, indicating a potential breakthrough in trade and investment relations.
Speaking in an interview with CNN Business Arabia, Aurangzeb said Pakistan is moving steadily towards finalising the agreement. “We are overall moving forward with the FTA with the GCC. In terms of timing, we are very close,” he stated, adding that the Ministry of Commerce is leading the negotiations and would provide a final timeline.
The finance minister said the development reflects Pakistan’s renewed economic confidence following sustained reform efforts. He acknowledged the long-standing support of GCC countries — particularly Saudi Arabia, the United Arab Emirates, and Qatar — in providing financial assistance and backing Pakistan at international institutions such as the International Monetary Fund (IMF).
However, Aurangzeb stressed that Pakistan’s focus is shifting from reliance on financial assistance to expanding trade and attracting long-term investment. He noted that remittances remain a vital pillar of economic stability, with inflows reaching $38 billion last year and projected to rise to $41–42 billion this year, more than half coming from GCC countries.
He identified key sectors for future cooperation and investment, including energy, oil and gas, minerals and mining, artificial intelligence, digital infrastructure, pharmaceuticals, and agriculture, saying Pakistan is actively engaging GCC partners in these areas.
Aurangzeb highlighted that Pakistan has been implementing a comprehensive macroeconomic stabilisation programme over the past 18 months, delivering measurable results. Inflation has fallen to single digits, a primary fiscal surplus has been achieved, and the current account deficit remains under control.
He also pointed to improvements in external stability, noting that the exchange rate has stabilised and foreign exchange reserves have increased to cover around 2.5 months of imports.
The finance minister cited two major international validations of Pakistan’s economic recovery: the recent upgrades by all three international credit rating agencies and the IMF Executive Board’s approval of the second review under the Extended Fund Facility.
Aurangzeb said reforms are underway in critical areas including taxation, energy, state-owned enterprises, public financial management, and privatisation, aimed at ensuring long-term sustainability. He noted progress in raising Pakistan’s tax-to-GDP ratio, which has increased from 8.8% to 10.3%, with a target of reaching 11%.
In the energy sector, he highlighted governance reforms, private sector participation, privatisation, and efforts to reduce circular debt, stressing that tariff rationalisation is key to making energy affordable for industry.
Reiterating the government’s strategic vision, Aurangzeb said Pakistan’s future lies in trade- and investment-led partnerships, concluding, “We are not looking for aid flows anymore.”
