Govt Will Cut Its Own Spending to Fund Armed Forces: Finance Minister

Finance Minister Muhammad Aurangzeb on Wednesday said that a reduction in government spending is unavoidable to support the armed forces as security challenges intensify on both borders. Speaking at the Karachi Chamber of Commerce, the finance minister said the government has achieved a degree of financial discipline and paid off several loans, but must now further tighten its expenditures. He emphasized that efforts are being made to reduce government borrowing from banks. Aurangzeb said the central bank governor will hold a meeting with commercial banks this week to discuss the slow pace of credit flow to the private sector and explore ways to enhance it. He further said Pakistan remains an attractive destination for global investors, noting that while some multinational companies have exited, others have entered the market. Aurangzeb also highlighted strong growth in the pharmaceutical industry, saying that local production and exports in the sector are increasing steadily.