Government Committed to Structural Reforms, Says Aurangzeb

PESHAWAR: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has reiterated the government’s commitment to deepening structural economic reforms, expanding the tax base, and ensuring macroeconomic stability to put Pakistan on a sustainable growth path.

Addressing the Pakistan Business Summit in Peshawar on Thursday, the finance minister stated that the government’s role is to create an enabling environment that fosters economic growth, led by the private sector, backed by clear tax policy, stable markets, and investor confidence.

Key Highlights

• Govt reaffirmed resolve to implement comprehensive tax reforms, separating policy from collection.
• The minister said remittances are expected to touch $41–43 billion, aided by currency stability.
• Pakistan successfully repaid $500 million Eurobond, showing improved market confidence.
• 24 joint ventures signed with China, alongside plans to issue Panda Bonds this year.
• Tariff reforms and export-led growth are identified as economic priorities.
• Coordination between federal and provincial governments is emphasized for development spending.
• Climate change and population growth are flagged as long-term structural challenges.

Economic Stability and Policy Direction

Senator Aurangzeb stated that Pakistan is moving in the right economic direction, citing recent reductions in policy rates, improved foreign exchange reserves, and a stable currency as key achievements. These developments, he noted, have boosted investor confidence, reduced financing costs, and supported repatriation of dividends and profits.

He highlighted a sharp rise in remittances, which reached USD 38 billion last year and are projected to increase to USD 41–43 billion this fiscal year. Pakistan, he said, had also successfully repaid USD 500 million in Eurobond obligations in September without market disruption, and is well-positioned for upcoming repayments.

Tax Reforms and Business Environment

Reaffirming the government’s resolve to implement tax reforms, Aurangzeb said the Finance Division is focusing on tax policy, while the Federal Board of Revenue (FBR) is being tasked with collection.

“We have to restore public confidence in the taxation system and widen the tax base. Consistent and credible tax policy is essential for investors,” he told the summit.

He emphasized that a predictable and fair tax environment, combined with tariff reforms and improvements in the energy sector, is crucial for supporting export-led growth and attracting foreign direct investment (FDI).

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Global Partnerships and Investment

The finance minister highlighted Pakistan’s recent economic diplomacy, citing engagements in Beijing, Riyadh, Washington, and New York. He said the signing of 24 joint ventures with Chinese firms reflects renewed global confidence.

Plans for Pakistan’s first Panda Bond issuance this year will give access to China’s deep capital markets, he added.

Structural Challenges and Reform Agenda

Aurangzeb also stressed the importance of public sector reforms, privatization, and energy pricing reforms as critical pillars of the government’s agenda. He urged better coordination with provinces to maximize the impact of the Rs. 4.3 trillion national development budget, particularly in infrastructure, health, and education.

He warned that climate change and population growth remain long-term threats to Pakistan’s development trajectory. Issues like child stunting and learning poverty, he said, must be addressed alongside fiscal reforms to secure the country’s future productivity.

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Vision for Sustainable Growth

Concluding his address, Senator Aurangzeb reaffirmed the government’s resolve to steer the economy toward resilience and global competitiveness, ensuring that reforms translate into tangible benefits for citizens.

“Our path to sustainable growth rests on private sector dynamism, competitiveness, and close coordination between the federation and provinces,” he said.

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