On Thursday, Finance and Revenue Minister Muhammad Aurangzeb stated that Pakistan’s economy is on track for sustainable growth and emphasized the importance of mobilizing funds for infrastructure and poverty alleviation through Shariah-compliant bonds like Sukuks.
Speaking virtually at the second International Islamic Capital Markets Conference & Expo in Karachi, Aurangzeb acknowledged the economic challenges Pakistan has faced in recent years but assured that these issues have been addressed. He said, “We are now on the right trajectory toward macroeconomic stability and sustainable growth.”
Aurangzeb highlighted that Islamic financial instruments such as Sukuks are key to mobilizing financing for critical sectors, including infrastructure and poverty reduction. He expressed confidence that with the right mechanisms in place, Pakistan has the potential to become a leading global hub for Islamic finance.
He reiterated the government’s commitment to aligning the financial system with Shariah principles, aiming to reduce reliance on interest-based borrowing. He also mentioned that 56% of the market capitalization at the Pakistan Stock Exchange (PSX) is made up of Shariah-compliant securities, while a significant portion of mutual funds, pension funds, and real estate investment trusts (REITs) are also Shariah-compliant.
Aurangzeb further projected that remittances to Pakistan will reach $35 billion in the fiscal year 2025, underscoring the nation’s growing economic momentum.
Saleem Ullah, Deputy Governor of the State Bank of Pakistan, also spoke at the conference, acknowledging the challenge of converting Pakistan’s substantial debt into Shariah-compliant products.
