KEY POINTS
- Aurangzeb says reform agenda has entered the implementation phase, not crisis management.
- IMF discussions centred on continuity of reforms and growth strategy.
- FBR reports 18% rise in active tax filers, tax-to-GDP ratio up 1.5 percentage points.
- Rs 1,200 billion energy-sector plan unveiled to tackle circular debt.
- Government reaffirms commitment to structural reforms, privatisation, and digital governance.
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Monday ruled out any abrupt fiscal measures, saying that Pakistan’s reform agenda had moved beyond crisis management and entered its implementation phase.
Speaking during a detailed press conference in Islamabad—followed by a question-and-answer session with journalists—he said discussions with the International Monetary Fund (IMF) were “constructive” and revolved around continuity of reforms rather than emergency assistance.
Aurangzeb said Pakistan’s economic direction had been “set right” through structural measures that were now being operationalised across key sectors.
He noted that the government had achieved “considerable progress in terms of macroeconomic stability,” referring to recent upgrades by major international credit-rating agencies and the successful IMF staff-level agreement.
But he did not elaborate on the question of trickle-down of macroeconomic improvements to the microeconomy.
Instead, he repeated inflation numbers when asked about the lack of real economic activity, rising unemployment, and inflationary pressures faced by consumers in the market.
He denied that any negative impact of the rightsizing would increase unemployment, which is already on the higher side.
The finance minister added that the government’s focus was now shifting from short-term stabilisation to long-term, sustainable growth, that, too, an inclusive one.
“We are focusing on sustainable, inclusive growth that benefits all segments of society,” he said.
The press conference also featured presentations by Minister for Power Awais Leghari, Minister of Information Technology and Telecommunication Shaza Fatima Khawaja, and Minister for Privatisation Muhammad Ali, Prime Minister’s Adviser on Rightsizing Sulaman Shah, Finance Secretary Imdad Bosal, and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial.
FBR Chairman Langrial presented updated revenue figures, stating that Pakistan’s tax-to-GDP ratio had improved by about 1.5 percentage points during the last fiscal year, while the number of active tax filers increased by nearly 18 per cent—from roughly 4.9 million to 5.9 million.
He said the rise reflected a broadening of the tax base and stronger compliance rather than reliance on new taxes.
Answering a question, he said, the retailer’s income tax has grown by 102 per cent from Rs 82 billion to Rs 165 billion.
Power Minister Awais Leghari briefed the media on energy-sector reforms, including a financial arrangement worth approximately Rs 1,200 billion aimed at reducing the circular-debt burden.
He said the government was implementing structural steps to improve recoveries, enhance metering systems and reduce system losses.
Minister for IT and Telecommunication Shaza Fatima Khawaja highlighted the government’s push to digitise governance and the economy, including automation of tax processes and expansion of digital-skills programmes.
She mentioned revolutionary improvements in safety net programmes through digitising the social sector.
Privatisation Minister Muhammad Ali outlined progress on the privatisation agenda, confirming that the national airline (PIA) and several financial institutions were getting ready for divestment.
He said the transactions would be transparent and designed to attract reputable investors.
During the Q&A session, Aurangzeb responded to questions on inflation and exchange-rate management, acknowledging that cost-of-living pressures persisted but expressing optimism that inflation would ease as supply-side measures and energy-sector efficiencies take effect.
He said foreign-exchange reserves remained “adequate and stable,” supported by higher remittances and controlled imports, adding that the rupee would continue to move according to market fundamentals.
He admitted that the exports remained sluggish, but rushed to add that the consistently rising inflow of remittances cushioned the economy.
He reiterated that policy consistency and credible execution would determine the success of reforms.
“The challenge is not new ideas but steady implementation,” he said, adding that the government intended to maintain a predictable policy environment to restore investor confidence.
He also mentioned the World Bank’s recent report on Pakistan’s economy, which emphasised that the government should stay on the reform course.
The press conference concluded with a reaffirmation of the government’s commitment to fiscal discipline, structural reforms and transparent privatisation as part of a broader strategy for sustainable growth and economic resilience.
