LONDON: Pakistan received $6.9 billion in remittances from the United Kingdom during the last financial year, while total remittance inflows reached $41.6 billion, Finance Minister Muhammad Aurangzeb said on Thursday.
Speaking at a Pakistan Investment Roundtable in London, Aurangzeb said total remittances were expected to rise to around $44 billion during the current financial year.
He said remittance inflows had remained resilient despite the conflict in the region, with transfers from Gulf countries increasing rather than declining.
The finance minister also highlighted growing use of the Roshan Digital Account, saying monthly inflows through the facility had exceeded $300 million since April.
Aurangzeb said Pakistan was seeking to strengthen its external position through higher remittances, services exports and increased foreign investment as part of a broader strategy to shift the economy from aid towards trade and investment.
Focus on UK trade, investment
The finance minister said Pakistan wanted to further increase trade and investment flows with the UK, with the government prioritising deeper commercial ties rather than reliance on traditional aid.
He said economic cooperation with the UK was being strengthened in areas including trade, investment, banking, remittances, capital markets and financial services.
Aurangzeb said Pakistan had recently returned to international capital markets after a four-year gap through a $3 billion international bond issue, with investor orders nearly twice the amount sought.
He said the diversity of the investor base, particularly participation from Asian investors, was an important indicator of international market interest in Pakistan.
Petroleum supplies
On energy security, Aurangzeb said Pakistan was covered for its petroleum requirements through September, while the outlook for October was also improving.
He said planning for petroleum requirements was being carried out by the Petroleum Division and the National Coordination and Monitoring Committee.
The comments came amid heightened uncertainty in global oil markets linked to geopolitical tensions in the Middle East.
Aurangzeb said inflation was a global phenomenon, with international factors including petroleum prices contributing to price pressures.
IT exports, freelancers
The finance minister also highlighted the growing contribution of Pakistan’s technology sector, saying IT services exports stood at $4.6 billion during the last financial year.
Of this amount, freelancers contributed $1.6 billion, underscoring the increasing role of digitally delivered services in generating foreign exchange.
Aurangzeb said the government wanted to build an economic ecosystem that enabled young Pakistanis to participate in the economy rather than simply creating government jobs for them.
He said technology remained an area with significant potential for export growth through improved digital connectivity and skills development in emerging fields.
The finance minister said the government’s broader economic strategy was focused on moving from stabilisation towards sustainable growth driven by investment, productivity and exports while continuing structural reforms.
He said efforts were also under way to improve the business environment and enable the private sector to play a greater role in economic growth.
The Finance Ministry has said fiscal consolidation was producing results through a primary surplus, deficit compression, increased revenue mobilisation and institutional reforms.
