Federal Minister for Finance Muhammad Aurangzeb held a virtual meeting with the Pakistan Banks’ Association (PBA) to discuss the evolving economic and financial situation in light of regional developments and the importance of close coordination between the government, the State Bank of Pakistan and the banking sector to ensure financial stability and uninterrupted financial services.

The finance minister highlighted the government’s ongoing monitoring of the situation and the steps being taken to assess its potential economic implications.

He shared that the government had established a high-level coordination mechanism comprising key economic ministries and relevant institutions to review developments on a continuous basis. The forum is closely examining developments in global markets, particularly in relation to supply chains and energy markets, while assessing their potential impact on key macroeconomic indicators.

Muhammad Aurangzeb informed the participants that regular scenario analysis was being undertaken to evaluate possible implications for inflation, external accounts and broader economic stability. He emphasised that authorities remain focused on ensuring continuity of essential supplies and maintaining macroeconomic stability while responding to developments in a timely and prudent manner.

He noted that the government was engaged with relevant stakeholders and international partners as part of efforts to safeguard the country’s economic interests.

The finance minister highlighted the importance of coordinated decision-making and close engagement with key sectors of the economy during periods of uncertainty. In that regard, he appreciated the role of the financial sector in maintaining confidence and ensuring the smooth functioning of financial markets.

He encouraged the banking industry to continue supporting businesses and customers while maintaining responsible risk management practices. He also underscored the importance of operational resilience and effective communication within the financial sector to provide uninterrupted financial services.

Aurangzeb reaffirmed the commitment to maintaining open channels of communication with the banking industry and other stakeholders. He assured meeting participants that the government would continue to work closely with the State Bank and the financial sector to respond to developments in a coordinated and timely manner.

Earlier, PBA Chairman Zafar Masud briefed the finance minister on the banking sector’s internal consultations and preparedness measures undertaken in response to the evolving situation. He shared that the banking industry had convened discussions to review potential implications for financial markets and operational continuity, with a focus on uninterrupted services to customers and businesses.

Masud said the banking industry had put in place a coordination framework to facilitate timely consultation and information sharing among financial institutions. The industry is also engaging with key financial system stakeholders for a smooth functioning of financial services and payment infrastructure.

He added that the banking sector would remain in close contact with the State Bank and other relevant institutions while continuing regular consultations within the industry to monitor developments.

The PBA chairman underlined the importance of continued coordination between the government, the central bank and the banking sector to support financial market stability and facilitate trade and financial flows. He noted that engagements with international banking partners and financial institutions remain important to build confidence in financial transactions and support essential economic activity.

Export competitiveness, industrial growth

Separately, the finance minister met a delegation of leading textile and apparel exporters and industry stakeholders, led by Pakistan Regional Economic Forum Chairman Haroon Sharif, to discuss measures aimed at strengthening export competitiveness, facilitating investment and supporting industrial growth.

The minister stressed that strengthening export-led sectors remains central to Pakistan’s economic revival strategy. He noted that enhancing productivity, encouraging innovation and improving global competitiveness of Pakistan’s key industries were critical to expanding exports, creating employment opportunities and sustaining long-term economic growth.

He reaffirmed the government’s commitment to maintaining close engagement with industry stakeholders to ensure that economic policies remain responsive to the needs of the business community while supporting sustainable and inclusive growth. He also underscored the importance of modernisation, technological upgrading and value addition in strengthening Pakistan’s export competitiveness.

The delegation called for aligning fiscal and regulatory policies with Pakistan’s competitive strengths in order to accelerate export-led growth and enhance industrial productivity. They highlighted that value-added segments require focused policy attention and targeted support in light of the evolving global market dynamics and increasing regional competition.

Industry representatives sought a streamlined and growth-oriented taxation and compliance framework that could facilitate re-investment, business expansion and ease of doing business. They demanded such policies that encourage modernisation through technology adoption and digital transformation, while addressing structural bottlenecks that affect industrial efficiency and export competitiveness.

Business leaders also advocated a review of labour cost structures and regulatory levies to ensure that Pakistan’s export-oriented industries remain competitive in international markets. Rationalising such costs, they noted, would support increased production capacity, employment generation and sustained export growth.