ISLAMABAD — Pakistan expects remittances to climb to $44 billion in the current fiscal year, up from $41.6 billion last year, Finance Minister Muhammad Aurangzeb has said, outlining a broader strategic shift from reliance on aid toward trade and investment.
In an interview with News Asia, Aurangzeb said Islamabad is working to strengthen global partnerships and expand bilateral economic ties as it repositions its foreign economic policy.
Balancing Ties With China and the United States
The finance minister said Pakistan wants to deepen economic relations with Gulf countries, China, the United States and other longstanding partners. He stressed that Islamabad intends to advance ties with both Beijing and Washington simultaneously, rather than treating its relationship with either as an alternative to the other.
Describing China as a longstanding partner, Aurangzeb underscored the importance of the China-Pakistan Economic Corridor (CPEC), a flagship component of Beijing’s Belt and Road Initiative.
He said the first phase of CPEC concentrated on infrastructure development, including roads, ports and power plants, while the second phase aims to extract greater economic benefits from that infrastructure, widen business opportunities and promote joint investment. Some joint ventures with China, he added, are already producing goods for export.
United States Remains Largest Trading Partner
Aurangzeb said Pakistan also seeks to expand economic cooperation with the United States, which he identified as the country’s largest trading partner, with the European Union ranking second.
He noted that growing divisions in global trade have heightened the importance of cooperation among different regions, and said Pakistan is exploring new avenues for collaboration with Gulf countries, Central Asian states and members of the Association of Southeast Asian Nations (ASEAN).
Gulf Ties Anchored in Remittances and Trade
Highlighting the role of remittances and trade in Pakistan’s relations with Gulf countries, the finance minister said the anticipated increase in remittance inflows would carry significant weight for the national economy.
He also pointed to recent visits by the leadership of Malaysia and Indonesia as having helped advance regional engagement, and said an upcoming meeting with Thailand’s finance minister would offer a further opportunity to strengthen economic cooperation.
Aurangzeb said Pakistan values the support and continued cooperation extended by its longstanding partners during difficult times.
