DAVOS, Wednesday, January 21, 2026 (WNP): Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday underscored the importance of responsible debt management and investment-led borrowing as key drivers of sustainable growth for emerging economies, while addressing a high-level panel at the World Economic Forum (WEF) in Davos.
Participating in the discussion titled “How Can We Unlock New Sources of Growth? – Weight of Global Debt,” the finance minister said that debt, if deployed prudently, can serve as a powerful tool for development rather than a liability.
SPEAKING FROM AN EMERGING MARKETS PERSPECTIVE, HE STRESSED THAT COUNTRIES SUCH AS PAKISTAN MUST CHANNEL BORROWING TOWARD PRODUCTIVE INVESTMENTS AND EXPORT-ORIENTED PROJECTS INSTEAD OF CONSUMPTION TO ENSURE LONG-TERM ECONOMIC SUSTAINABILITY.
Highlighting Pakistan’s recent macroeconomic stabilization, Senator Aurangzeb noted a sharp decline in inflation from 38 percent to single digits, a significant reduction in the policy interest rate, and an improvement in the debt-to-GDP ratio from 75 percent to around 70 percent. He attributed these gains to fiscal discipline, structural reforms and the maintenance of a primary fiscal surplus.
The minister also emphasized the need for building fiscal buffers to withstand external shocks, particularly those arising from climate change. In this context, he revealed that Pakistan is preparing to issue its inaugural green Panda bond, aimed at mobilizing sustainable financing and supporting climate-resilient development.
Outlining key investment initiatives, Senator Aurangzeb pointed to Pakistan’s largest-ever syndicated financing arrangement for a major copper mining project, which is expected to add nearly 10 percent to the country’s export base. He further highlighted the strong growth potential of the information technology sector, digital services and the broader new economy.
Concluding his remarks, the finance minister said that sustainable economic growth depends not on the volume of debt available, but on how effectively and responsibly it is managed. “Debt must be deployed to build resilience, enhance competitiveness and create long-term economic value,” he said, adding that Pakistan remains committed to an export-led and reform-driven growth model.
