ISLAMABAD – Federal Finance Minister Muhammad Aurangzeb has announced that the government will not impose additional burdens on the salaried class, but tax rates will need to be increased to fill fiscal gaps, with further reforms underway.
Speaking to the business community at an Independence Day and “Battle for Truth” event organised by the Rawalpindi Chamber of Commerce, Aurangzeb said the government is committed to ensuring that policy decisions benefit all stakeholders. He highlighted that consumer confidence is at an all-time high and Pakistan’s economic indicators are steadily improving.
The minister said privatisation of state-owned enterprises will accelerate this year, foreign exchange reserves have reached record levels, and the domestic business environment has improved significantly. He urged all sectors to work together in unity to drive national progress.
Extending advance Independence Day greetings, Aurangzeb said that faith, national unity, and patriotism are the symbols of Pakistan, while national security and economic stability are closely linked. He noted that over the past 18 months, efforts to increase revenue, stabilise the rupee, and reduce the policy rate have been successful, and further improvements are expected soon.
Aurangzeb provided details on the country’s financial position, stating that debt has risen by 41%, agricultural loans have crossed Rs 2.5 trillion, and Rs 1 trillion was repaid in debt servicing last year alone. He added that the Pakistan Stock Exchange is witnessing daily gains due to a record increase in new investors.
Additionally, right-sizing efforts are underway in 45 ministries, pension reforms are in progress, and measures to reduce electricity tariffs are being implemented.
The finance minister emphasised that Prime Minister Shehbaz Sharif is personally overseeing the Federal Board of Revenue’s (FBR) transformation. “We cannot place additional burdens on the salaried class, but tax rates will need to be increased. We are closing loopholes and implementing further reforms,” he said.
Aurangzeb said Pakistan’s economic measures have been recognised by international financial institutions. He cited progress on a US tariff deal, ongoing discussions with the IMF, and the securing of $1 billion in investment from the Middle East after two-and-a-half years.
He expressed optimism about the economy’s future, stating that the private sector can lead Pakistan towards sustainable growth. Aurangzeb added that further reductions in the interest rate are expected and will be announced soon.
Following the prime minister’s directives, the finance ministry is holding regular consultations with chambers of commerce nationwide, with Minister of State Bilal Kiani scheduled to meet chambers monthly. “Through these consultative committees, we aim to work together to make Pakistan a developed nation,” he concluded.
