Islamabad: Finance Minister Muhammad Aurangzeb has said that Pakistan is looking ahead to economic improvement in 2027 following the end of the Iran conflict, while also emphasizing the government’s efforts to strengthen the country’s financial position through higher revenue collection, investment initiatives, and financial market reforms.

In an interview with an international news agency, the finance minister stated that Pakistan had increased its defense expenditure by 18 percent, raising it to approximately Rs. 3 trillion. He noted that the conflict involving Iran had caused disruptions to regional energy infrastructure and contributed to economic uncertainty across the region.

According to Aurangzeb, the war-related disruptions had a noticeable impact on inflation, pushing price growth back into double-digit territory. He said that higher energy-related costs and supply concerns created additional challenges for economic management, although the government remains focused on maintaining stability and restoring growth momentum.

The minister explained that Pakistan’s economic strategy continues to rely heavily on increasing tax revenues in order to meet commitments under the International Monetary Fund (IMF) program. He stressed that it would be premature to make major changes to the current budget framework, as authorities are still assessing the economic environment and monitoring fiscal performance.

Aurangzeb also outlined Pakistan’s plans to raise financing from international capital markets. He said the government intends to issue additional Panda Bonds, Eurobonds, and U.S. dollar-denominated bonds to diversify funding sources and support economic development.

He revealed that Pakistan expects to secure approximately $2.82 billion in commercial and Eurobond financing during the next fiscal year. In addition, the country has already obtained approval for the issuance of Panda Bonds worth the equivalent of $1 billion, which could help attract investment from Chinese financial markets and broaden Pakistan’s investor base.

Discussing emerging financial technologies, the finance minister said the government plans to introduce regulations covering cryptocurrencies, tokenization, and digital asset exchanges. He explained that establishing a clear regulatory framework is the first priority, after which authorities will consider taxation policies for these digital financial activities.

Aurangzeb emphasized that regulation of digital assets could encourage innovation while ensuring transparency, investor protection, and compliance with international financial standards. He added that Pakistan aims to modernize its financial sector and explore new avenues for investment and economic growth.

The finance minister expressed optimism that with improved regional stability, continued fiscal reforms, and support from international financial institutions, Pakistan would be in a stronger position to achieve sustainable economic progress in the coming years, particularly by 2027.