- Advertisement -
ISLAMABAD, May 26 (APP):Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, here on Monday urged the nation to exhibit the same unity on the economic front as it did in response to India’s recent unfounded aggression, stressing that such solidarity was vital for sustainable economic growth.
“We have come together in unity against the unfounded aggression and the unity that the nation has shown, we need the same unity on economic front,” the minister said while addressing a conference organized by Karandaaz Pakistan & Pakistan Banks Association (PBA).
He pleaded for that same spirit of cooperation in economic efforts to move forward and become a meaningful part of the comity of nations. He said, to achieve this, there was need to learn how to collaborate effectively, rather than working in isolation. He urged development finance institutions (DFIs) to support scaled-up, horizontally integrated efforts rather than fragmented, vertical initiatives.
The minister said, the way the armed forces and political leadership stood united against the recent aggression was a moment of pride for the entire nation, and it was rightly celebrated.
Without naming India, the minister said, every possible effort was made to prevent crucial economic meeting with International Monetary Fund (IMF) from taking place—or to ensure that key items, such as the second tranche under the Extended Fund Facility (EFF) or the $1.3 billion under the Resilience and Sustainability Facility (RSF) for climate resilience, were kept off the agenda.
However, he said, Pakistan moved past as its case was discussed and decided on merit, adding the government had clearly prioritized key areas, and the international community recognizes that Pakistan urgently needs support in developing human capital and strengthening climate resilience.
Meanwhile, talking about the upcoming budget for the fiscal year 2025-26, the minister said, in order to promote export-led growth, the government was set to introduce bold measures aimed at fundamentally reshaping the DNA of the economy.
He emphasized that the upcoming budget would not merely be a statement of revenue and expenditure but a strategic document that should reflect the direction in which the economy is heading. “It’s not just about the next fiscal year—it should at least signal where we want to take the economy in the long term,” he said.
While acknowledging the importance of budgetary math-work, he stressed that the broader goal was to make the budget a strategic roadmap for sustainable economic transformation.
He said, Pakistan’s recent economic performance has been positively received by international partners, foreign investors, and bilateral counterparts during engagements in Washington, London, Karachi, and Lahore. He noted that there was broad appreciation for the country’s macroeconomic turnaround and the speed with which stability has been restored.
However, he cautioned that macroeconomic stability was only a means to an end, not the end itself. The consistent message from partners, he said, was clear and that Pakistan must “stay the course” to avoid repeating past cycles of short-lived recoveries followed by crises. “We’ve had enough of boom-and-bust cycles,” Aurangzeb remarked, emphasizing that structural reforms—especially in taxation, energy, and privatization—are now well underway.
He detailed key steps such as the digitization of the Federal Board of Revenue (FBR) with private sector support, simplification of tax processes for salaried individuals, and the handover of 24 state-owned enterprises to the Privatization Commission.
On the fiscal side, he said the government has already reduced debt servicing costs by Rs1 trillion this year and will modernize the debt management office next year to align with global best practices. Aurangzeb also highlighted reforms in pensions, public sector downsizing, and a shift toward a defined contribution system for new government hires.
Looking ahead, the finance minister stressed that for Pakistan to evolve into a $3 trillion economy, it must address challenges related to population growth and climate change.
He noted that during discussions with the World Bank (WB) and International Monetary Fund (IMF), Pakistan made it clear that alongside infrastructure, investment in climate and human capital was essential. As part of a 10-year Country Partnership Framework signed with the World Bank on January 15, four out of six key focus areas relate directly to climate and population issues. The agreement includes $20 billion in funding, with additional private sector investment expected through the International Finance Corporation (IFC).
He urged development finance institutions (DFIs) to support scaled-up, horizontally integrated efforts rather than fragmented, vertical initiatives.