Economy: Aurangzeb outlines steps

WASHINGTON: Finance Minister Muhammad Aurangzeb Sunday outlined significant economic reforms and tax policies aimed at increasing transparency and sustainability in Pakistan’s economy.

Speaking at a press conference after concluding his visit to Washington, where he participated in the World Bank (WB) and International Monetary Fund (IMF) annual meetings from October 21 to 26, the Finance Minister said that his meetings with stakeholders in the United States remained positive, adding that the stakeholders appreciated the scaling down of inflation in Pakistan.

They expressed the confidence that the economy was on the right path and would grow, he said.

“All global rating agencies have upgraded Pakistan’s ratings which is an indication that the economy is going in right direction. We have to take harsh decisions for the betterment of economy,” said the finance minister.

Aurangzeb optimistic about swift finalisation of ADB’s Country Partnership Framework

The Finance Minister held a series of meetings with the leaders from several international finance institutions and authorities including rating agencies, multinational banks, WB, IMF and the Asian Development Bank (ADB).

Aurangzeb said that the US business communities were willing to invest in Pakistan as all rating agencies stated the economy was moving in the right direction. He also apprised media that the WB would give Pakistan a grant instead of loan. Whereas, he said, the government would try not to take a loan from the IMF anymore.

He expressed the hope that the current IMF programme would be the last programme. “Our foreign reserves have increased to $11 billion. We have reduced reliance on foreign loans. All banks are ready to cooperate with the government,” he concluded.

Aurangzeb emphasised that no one will be harassed for taxes, with data-driven assessments now central to tax collection efforts.

He also announced new restrictions for non-filers, stating they will be unable to open bank accounts or purchase property, pending legislative approval. “We need a legal cover for non-filers, we are erasing the term non-filer’ itself. We will raise the tax-to-GDP ratio from nine to 13 percent,” reaffirmed the finance minister.

Aurangzeb highlighted upcoming reforms in the Federal Board of Revenue (FBR), aimed at boosting transparency and fostering sustainable development.

“We are taking difficult decisions to improve the economy. Our focus includes reducing imports, increasing exports in sectors like IT and agriculture, and transitioning government-owned enterprises to private management where feasible,” he said.

Aurangzeb also held meetings with the Saudi Finance Minister and China’s Vice Finance Minister Liao Min, emphasising Pakistan’s commitment to strong bilateral relationships. He confirmed plans to issue Pakistan’s first panda bond in the Chinese market and reassured robust security for Chinese citizens in Pakistan.

Additional meetings with global tech and financial leaders underscored Pakistan’s digital ambitions. Google Vice President Kiran Bhatia discussed Google’s ongoing investments and plans to support Pakistan’s economy, while Visa’s Regional President Andrew Torre reviewed efforts to modernize the payment system in Pakistan, including support for local institutions like OneLink.

The Finance Minister praised Visa’s Financial Inclusion Card initiative, a collaborative effort with private banks to enhance consumer access and ensure fair transaction processing options.

Aurangzeb conveyed the government’s commitment to driving sustainable economic growth and building a resilient financial system in Pakistan.