Finance Minister Muhammad Aurangzeb underscored Pakistan’s strategic shift from seeking aid-based support towards trade- and investment-led engagement to ensure long-term economic sustainability and mutually beneficial partnerships, particularly with the Gulf Cooperation Council (GCC) countries.

In an interview with CNN Business Arabia, Aurangzeb highlighted the vision of Prime Minister Shehbaz Sharif, which reflected Pakistan’s renewed economic confidence and reform momentum.

He said that Pakistan has followed a comprehensive macroeconomic stabilisation program for the past 18 months, which has delivered tangible and measurable results, while inflation has declined to single-digit levels from an unprecedented 38%.

On the fiscal front, Pakistan has achieved primary surpluses, while the current account deficit remains well within targeted limits. According to the finance czar, the exchange rate has also stabilised, and foreign exchange reserves have improved to approximately 2.5 months of import cover, reflecting strengthening external buffers.

He maintained that the country has two major external validations, which indicate Pakistan’s improving economic outlook.

Firstly, he said, all three international credit rating agencies have aligned their assessments this year by upgrading Pakistan’s ratings and outlook. On the other hand, the country has completed the second review under the IMF Extended Fund Facility, with the IMF Executive Board granting its approval earlier this week.

He stated that such developments demonstrate growing international confidence in Pakistan’s economic management and reform trajectory.

The finance minister further emphasised that macroeconomic stabilisation has been achieved through a coordinated approach combining disciplined monetary and fiscal policies with an ambitious structural reform agenda.

“Reforms are being implemented across key areas, including taxation, energy, state-owned enterprises, public financial management, and privatisation, aimed at consolidating stability and laying the foundation for sustainable growth,” Aurangzeb said.

The finance minister also highlighted the significant progress in Pakistan’s improvement of the tax-to-GDP ratio.

“During the last fiscal year, it increased to 10.3 per cent, with a clear path towards 11 per cent,” the finance minister said.

He further explained the government’s objective to reach a level of tax collection that ensures fiscal sustainability over the medium to long term.

“This is being pursued through widening the tax base by bringing previously undertaxed but economically significant sectors such as real estate, agriculture, and wholesale and retail trade into the formal net, alongside deepening compliance by reducing leakages through production monitoring systems and AI-enabled technologies. Simultaneously, the tax administration is being transformed through reforms in people, processes, and technology,” he said.

The minister further highlighted efforts to improve governance in [power] distribution companies, involve private sector expertise, advance privatisation, and reduce circular debt, which has long constrained the power sector.

“Rationalising the tariff regime is essential to making energy more competitive for industry, thereby enabling industrial revival and economic growth,” he stressed.

Senator Aurangzeb acknowledged the longstanding support of GCC countries, including Saudi Arabia, the United Arab Emirates, and Qatar, for their critical role in critical role supporting Pakistan through financing, funding, and cooperation at international financial institutions such as the International Monetary Fund.

“This relationship is now evolving towards a new phase centred on trade expansion and investment flows. Remittances continue to play a vital role in supporting the current account, with inflows reaching approximately $38 billion last year and projected to rise to $41-42 billion this year, over half of which originates from GCC countries,” he added.

He further said, “Pakistan is actively engaging with GCC partners to attract investment in priority sectors including energy, oil and gas, minerals and mining, artificial intelligence, digital infrastructure, pharmaceuticals, and agriculture.”

Expressing optimism regarding progress on a Free Trade Agreement (FTA) with the GCC, he termed the discussions at an “advanced stage”.

Senator Aurangzeb reiterated the government’s strategic direction in shifting the collective focus on trade rather than relying on aid.

“Pakistan’s future lies in fostering trade and investment partnerships rather than reliance on aid,” said the finance minister.

He also emphasised the role of foreign direct investment in supporting the higher GDP growth, generating employment opportunities, and delivering shared economic benefits for Pakistan and its partners.

“The government is fully mobilised to translate this vision into reality.” He concluded.

New Delhi: The Indian Railways is close to completing the electrification of almost its entire broad-gauge network, with more than 99 per cent already electrified and the remaining stretches expected to finish soon, according to a statement issued by the Railways Ministry on Sunday. 

“The pace of work in recent years has been extraordinary. Between 2019 and 2025, Indian Railways electrified over 33,000 route kilometres, working at an average speed of more than 15 Route KMs every single day. The total distance electrified during this period alone is almost equal to the entire railway network of Germany, showing the scale and seriousness with which India has expanded clean and efficient rail traction,” the statement said.

India’s achievement stands out even when compared with countries that have long-established railway systems. India has managed to electrify nearly its entire broad-gauge system despite operating one of the world’s largest and busiest rail networks.

This transition has reduced diesel consumption, cut emissions, lowered operational costs, and improved the efficiency and speed of train operations. While several advanced economies still depend heavily on diesel traction due to cost or structural limitations, India has moved forward with clear planning and consistent execution.

As the final stretches are completed, the country is set to operate one of the world’s largest fully electrified railway systems, supporting Indian Railways’ goal of becoming a net-zero carbon emitter and offering cleaner, faster and more reliable mobility to millions of passengers every day.

Railways Minister Ashwini Vaishnaw had informed Parliament on Wednesday that Indian Railways has planned to progressively meet its electric power requirement for traction purposes through renewable energy sources with a combination of solar, wind and other renewable sources based on strategic power procurement planning, thereby reducing its carbon emissions.

The minister said that till November 2025, about 812 megawatt (MW) of solar plants and about 93 MW of wind power plants have been commissioned, which are meeting the traction requirements of Indian Railways. Further, 100 MW of renewable power under the Round the Clock (RTC) mode tied up from the Solar Energy Corporation of India (SECI) has also started flowing for traction purposes.

In addition to this, 1,500 MW of renewable capacity under the RTC mode has been tied up to meet the traction power requirement. This is a hybrid solution consisting of solar, wind, and storage components.

He further stated that Indian Railways is now manufacturing and commissioning state of the art three-phase IGBT technology-based locomotives. These locomotives have regenerative features and are, therefore, able to regenerate part of the energy consumed during braking and are, therefore, more energy efficient.

Last Updated:December 15, 2025, 16:28 IST

India leads Asia Pacific growth in 2026 with a 6.6 percent rate and 4.2 percent inflation, says Mastercard Economics Institute.

News18

India continues to dominate among Asia-Pacific economies next year with the growth rate at 6.6 per cent and inflation at 4.2 per cent, according to the annual economic outlook for 2026 by the Mastercard Economics Institute (MEI).

Factors that make India among the fastest-growing major economies are favourable demographics, rapid digitization and technological advancements, leading to a growth in global capability centres and Tier 2-3 cities.

The report mentioned that tourism has emerged as a key growth lever with destinations such as Goa, Rishikesh and Amristar attracting experiential and spiritual travelers.

AI Enthusiasm Index score of 8, the report said, shows growing push of AI adoption in the country, harnessing the next wave of productivity gains.

Globally, MEI expects real GDP growth to ease marginally to 3.1 per cent in 2026, compared to an estimated 3.2 per cent in 2025.

Asia Pacific has shown strong resilience despite tariff uncertainty and shifting supply chains that have disrupted global trade, said David Mann, chief economist for Asia Pacific at Mastercard.

He noted that the largely positive outlook for consumers across the region reflects an important trend heading into 2026. Even as trade realignments and technological changes shape the global economy, improving microeconomic conditions in many Asia Pacific markets are supporting demand. Mann added that businesses will need to closely track these underlying demand trends.

According to the report, Asia Pacific continues to remain central to global supply chains despite ongoing realignments. India, ASEAN and the Chinese mainland are playing an increasingly important role as companies rethink sourcing strategies and investment plans.

(With IANS Inputs)

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