ISLAMABAD (April 28, 2026) — Finance Minister Muhammad Aurangzeb announced today that Pakistan’s economy is on track to grow by 4% in the current fiscal year (FY26), a projection bolstered by a significant $1 billion current account surplus in March. Speaking at the inauguration of the first high-level EU-Pakistan Business Forum, the minister presented a robust case for Pakistan’s recovery, highlighting that foreign exchange reserves are expected to hit $18 billion by June. The forum, which gathered over 1,000 policymakers and business leaders, serves as a strategic platform to move beyond traditional trade and toward long-term European investment and technological integration.
Highlights
- The government projects 4% GDP growth, slightly higher than the ADB’s recent upgrade to 3.5%.
- A current account surplus of $1.07 billion was recorded in March, a massive jump from February’s $23 million.
- Foreign exchange reserves are expected to provide three months of import cover ($18bn) by the end of the fiscal year.
- The EU remains Pakistan’s #1 export destination, with new focus on “green” and sustainable investments.
- The launch of the EU-Pakistan Business Network will represent over 300 European companies active in the country.
The first ever High-Level EU–Pakistan Business Forum officially kicked off today! 🇪🇺🇵🇰
Bringing together 1000 business leaders, investors and policymakers from 🇪🇺 Europe and 🇵🇰 Pakistan to boost trade, investment and sustainable growth.
1/4 https://t.co/z60czVR4OT pic.twitter.com/xcNJf8ZFht— EUPakistan (@EUPakistan) April 28, 2026
From Stabilization to Transformation
The Finance Minister’s presentation detailed a shift from mere economic stabilization to active growth:
- IT exports and value-added textiles were cited as primary drivers of the positive trajectory.
- Continued growth in remittances has provided the necessary liquidity to stabilize the Rupee and build reserves.
- The forum explored the EU’s €400 billion Global Gateway initiative, aiming to mobilize European capital for infrastructure and digital innovation in Pakistan.
While the GSP+ framework continues to support Pakistani exports, Special Assistant to the PM Haroon Akhtar Khan emphasized that the future lies in technological collaboration.
More than 600 business-to-business meetings are scheduled over the two-day event to foster joint ventures. Discussions are centered on fintech, sustainable textiles, and responsible mining—sectors where European expertise can modernize Pakistani industry. The newly formed Business Network will facilitate a direct dialogue between European investors and Pakistani policymakers to resolve regulatory hurdles.
European Union Ambassador Raimundas Karobolis noted that the goal is to “deepen and green” the relationship, transforming trade into permanent investments that benefit both the 230 million people of Pakistan and the vast European single market.
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