Pakistan’s Real Economy Could Be Close to $1 Trillion: Finance Minister

Finance Minister Senator Muhammad Aurangzeb has said that Pakistan’s real economy could be close to $1 trillion, nearly double the officially documented figure of $411 billion. He shared this insight during a business session organized for a Saudi business delegation at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi.

Aurangzeb explained that while Pakistan’s recorded economy stands at $411 billion, almost half of the country’s economic activity remains undocumented. He noted that the real economy could be close to $1 trillion when factoring in the informal and unreported sectors.

The finance minister highlighted that Prime Minister Shehbaz Sharif is personally overseeing two critical reform tracks: tax reforms and the country’s digital transformation toward a cashless economy. He emphasized that digitization and documentation will be central to broadening the tax base and improving fiscal stability.

Aurangzeb also discussed the recently approved Pakistan–Saudi Arabia Security Pact, calling it a reflection of growing trust between the two nations and a foundation for deeper economic cooperation. He noted that Pakistan is in the final stages of talks with the International Monetary Fund (IMF), with only a few matters remaining before a staff-level agreement is reached in Washington.

The minister stressed that the government’s economic focus is now shifting from stabilization to sustainable growth through increased exports, better energy efficiency, and faster digital adoption. He said that reforms, documentation, and investment must progress together to unlock the country’s full potential.