Pakistan Moves From Foreign Aid To Trade And Investment Partnerships

Finance Minister Muhammad Aurangzeb stated that Pakistan is shifting its economic strategy toward trade and investment rather than relying on foreign aid.

NationPulse Desk

Oct 15, 2026 · 4:13 PM 2 min read

Key takeaways

Finance Minister Muhammad Aurangzeb announced Pakistan is shifting from foreign aid to trade and investment partnerships.

Remittances from overseas workers reached $41.6 billion last year and are projected to hit $44 billion this year.

Pakistan views its relationships with China and the United States through an "and-and" approach.

The second phase of the China-Pakistan Economic Corridor focuses on business collaboration and export-oriented production.

The United States remains Pakistan's largest trading partner, followed by the European Union.

Finance Minister Muhammad Aurangzeb announced in a Channel News Asia interview that Pakistan intends to move away from foreign aid and prioritize trade and investment in its bilateral dealings, while aiming to deepen economic connections with the United States, China, Gulf nations, and other regional partners.

While expressing appreciation for the historic backing from traditional allies, especially Gulf Cooperation Council members, Aurangzeb noted that the nation is currently prioritizing commercial and investment partnerships.

He reported that money sent home by overseas workers in the Gulf and elsewhere hit $41.6 billion in the previous year and projected an increase to $44 billion for the current year.

Addressing relations with Washington and Beijing, Aurangzeb explained that Pakistan maintains an "and-and" perspective toward both superpowers instead of selecting one partner over another.

He explained that initial work on the China-Pakistan Economic Corridor centered on basic infrastructure like ports, roads, and independent power plants, whereas the subsequent stage seeks maximum financial returns from those assets via joint ventures, business partnerships, and export-driven manufacturing.

Aurangzeb added that the government wants to deepen economic ties with the United States and push bilateral economic cooperation forward.

Regarding trade within the region, the finance minister pointed to possibilities for increasing commercial ties with ASEAN, Central Asian nations, and GCC member states.

He noted that increasing divisions in international commerce provide openings for the country to discover fresh regional markets and expand its trading partners. Although the United States stays as the top trading partner followed by the European Union, he stated that regional cooperation grows more critical during geopolitical friction and supply chain disruptions.

Aurangzeb stated that the country is building closer regional alliances to boost trade strength, minimize vulnerability to outside shocks, and uncover fresh avenues for commerce and investment.

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