Pakistan, UK discuss economic cooperation, reforms and regional stability

Abdullah Jan

Islamabad: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb this week held talks with United Kingdom Parliamentary Under-Secretary of State for the Middle East, Afghanistan and Pakistan Hamish Falconer, focusing on Pakistan’s economic reform agenda, regional developments and opportunities to strengthen bilateral economic cooperation.

Falconer called on the finance minister at the Finance Division during his visit to Islamabad. He was accompanied by British High Commissioner Jane Marriott, while senior officials from both sides also attended the meeting.

The discussions covered a wide range of issues, including Pakistan’s macroeconomic outlook, fiscal priorities, ongoing structural reforms, institutional modernisation and avenues for expanding economic collaboration between Pakistan and the United Kingdom.

During the meeting, Senator Aurangzeb briefed the British delegation on the government’s economic reform programme and outlined key priorities incorporated in the federal budget for 2026-27. He reaffirmed the government’s commitment to maintaining macroeconomic stability, sustaining economic recovery and implementing structural reforms aimed at promoting inclusive and long-term growth.

The finance minister also shared Pakistan’s perspective on recent regional developments, including the easing of tensions following the understanding reached between the United States and Iran. He reiterated Pakistan’s consistent support for dialogue, de-escalation and the peaceful resolution of disputes, noting that Islamabad had advocated for reducing regional tensions from the outset.

Aurangzeb observed that prolonged instability in the region can negatively affect economic confidence, energy markets, supply chains and growth prospects, particularly for emerging economies. He said the government’s economic planning and fiscal projections had taken into account potential geopolitical risks and the indirect economic consequences of prolonged regional uncertainty.

At the same time, he noted that improved regional stability would create more favourable conditions for investment, trade and economic activity, benefiting countries across the region.

The finance minister also highlighted Pakistan’s ongoing fiscal and institutional reform efforts, including measures to improve revenue collection, strengthen compliance, reduce leakages and modernise tax administration. He said the government is increasingly relying on technology, data integration, centralised processing systems and digital invoicing to enhance efficiency and transparency.

According to Aurangzeb, the reforms are designed not only to improve revenue performance but also to strengthen public trust by reducing discretionary interventions and promoting greater transparency in governance and public administration.

The two sides also discussed broader structural reforms, including the privatisation and rightsizing of public-sector entities, improving public expenditure efficiency, expanding digital governance and strengthening targeted social protection programmes.

The minister highlighted progress being made in technology-driven service delivery and efforts to ensure more effective allocation of public resources.

Falconer appreciated the government’s commitment to economic reform and acknowledged the scope and seriousness of Pakistan’s ongoing transformation agenda. He reaffirmed the United Kingdom’s interest in maintaining close cooperation with Pakistan and supporting initiatives that contribute to economic stability, institutional development and sustainable growth.

The meeting concluded with both sides expressing their commitment to further strengthening bilateral engagement and expanding cooperation in areas of mutual interest.