3 Trillion Dollar Economy by 2047: Aurangzeb’s Warning

3 trillion dollar economy by 2047 is not possible without controlling population growth, Federal Finance Minister Muhammad Aurangzeb said on Tuesday.

He stated that Pakistan cannot achieve sustainable development with an annual population growth rate of 2.55 percent. Aurangzeb stressed that population control is essential to meet long-term economic goals.

The finance minister spoke at the Pakistan Policy Dialogue. He said that although the trade deficit has increased, the current account deficit remains within the set target. He added that large-scale industries showed positive performance in the first quarter of the current fiscal year.

Muhammad Aurangzeb said private sector lending has increased to Rs1.1 trillion. He said remittances reached $38 billion last year and will cross $41 billion this year. Aurangzeb also announced that the government plans to issue Panda Bonds in the Chinese market.

He said Pakistan had very low foreign exchange reserves four years ago, which forced the country to return to the IMF, and investor confidence is now improving. Finance minister cited a survey showing that 73 percent of investors support investing in Pakistan, compared to 61 percent earlier.

The minister said the government needs new business models to reduce taxes and electricity costs. He stated that interest payments on debt remain the government’s largest expense. Aurangzeb added that the Debt Management Office helped save Rs850 billion in interest payments last year, with similar savings expected this year.

He said structural reforms and FBR transformation are ongoing, and explained that tax policy now falls under the Ministry of Finance, while FBR focuses on tax collection. Muhammad Aurangzeb added that compliance and enforcement are being strengthened.

Talking about the energy sector, he said local investors also took part in the privatization of PIA, and 24 institutions have been handed over to the Privatization Commission. He revealed that state-owned enterprises were wasting around Rs1 trillion every year, which led to the closure of Utility Stores, PWD, and PASSCO due to subsidy corruption.

Muhammad Aurangzeb said continuous increases in duties harm the economy. He stressed the need to keep duties reasonable and reduce business costs. Finance minister said Pakistan has the world’s third-largest freelance workforce. He added that the government must provide effective systems and digital platforms to help youth contribute fully to the economy.

The finance minister Muhammad Aurangzeb concluded that achieving a 3 trillion dollar economy by 2047 requires strong reforms, investor confidence, and strict population control.