ISLAMABAD, Nov 26 (APP): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Wednesday highlighted the importance of sustained structural reforms, stronger fiscal buffers and deeper public-private collaboration to safeguard Pakistan’s economic recovery and secure long-term stability.
Addressing the Pakistan Business Council’s two-day Dialogue on the Economy (DoE), he said Pakistan must confront “existential threats,” including rapid population growth, climate vulnerability and weak institutions.
The minister highlighted the PBC’s role in producing research-based input for national economic strategy.
He said several working groups formed by the Prime Minister were being led by private-sector experts whose recommendations had already resulted in “bold, on-the-spot decisions,” including abolition of the export surcharge
and reforms in the governance of the Export Development Fund, which would now be overseen by a private-sector professional.
Aurangzeb said global economic conditions were “better today than expected at the start of the year” due to avoided tariff escalations and ongoing reform momentum across emerging markets. However, he cautioned that geopolitical tensions, trade fragmentation and supply-chain realignments continued to pose risks.
For Pakistan, he stressed, building fiscal and external buffers was essential.
On the domestic front, he said the government had consolidated key macroeconomic gains, with early indications
of sectoral improvement.
During the first four months of the fiscal year, year-on-year output had risen in cement (16%), fertilizer (9%), petroleum (4%), automobiles (31%), mobile phones (26%) and large-scale manufacturing (4%). While these “green shoots” were encouraging, he warned against assuming they signalled a sustained trend.
Citing a recent Overseas Investors Chamber of Commerce and Industry survey, the minister said 73% of foreign investors now viewed Pakistan as a viable destination for foreign direct investment, up from 61% two years ago. Renewed interest from global and regional companies – particularly in minerals, energy, technology and infrastructure – was also evident, he added, noting Google’s decision to establish Pakistan as a technical and export hub.
Discussing structural reforms, Aurangzeb said the government had moved from policy design to full operationalization. The Federal Board of Revenue’s long-discussed transformation was now under way through a people-process-technology model, supported by the World Bank and other international partners. The FBR reform blueprint, he added, had begun attracting interest from other emerging economies.
He said tax policy had been fully separated from tax administration, with the new Tax Policy Office shifted to the Finance Division. Led by senior economists, the office would maintain year-round consultations with chambers and industries, replacing the earlier “once-a-year budget conversations.”
Aurangzeb stressed that reforms would now be driven by economic-value considerations rather than short-term revenue balancing. Data analytics, sectoral insights and private-sector feedback were being integrated into long-term policy-making, he added.
On energy governance, he said work was progressing to reduce circular debt, rationalize tariffs and improve competitiveness. He acknowledged industry concerns but pointed to “significant progress” and said further recommendations had been solicited by the Prime Minister.
Highlighting the government’s right-sizing and state-owned enterprise reform agenda, he said 54,000 vacant posts had been abolished, saving Rs 56 billion annually. Twenty ministries and 301 departments had undergone review, with nine more ministries and 78 departments still under evaluation. Several entities including divisions of the Civil Aviation Authority, PWD and Utility Stores Corporation – had been merged or closed. Such closures, he noted, involved
operational and legal complexities but were essential to curb subsidies and corruption.
The minister said the Prime Minister reviewed two areas weekly including taxation reforms and Digital Pakistan. A comprehensive road-map had been approved to expand digital payments, strengthen digital public infrastructure,
enhance financial inclusion and digitize government payments. Islamabad had already mandated digital payments
at retail outlets, he added.
Aurangzeb said widespread digitization would strengthen transparency, broaden documentation and improve ‘ease of doing business,’ while reducing the Rs 9.7 trillion circulating outside formal channels. Milestones had been set for June 2026, though the Prime Minister had directed accelerated adoption, he added.
Reaffirming the government’s resolve to institutionalize reforms, he urged the private sector to remain an active partner. “This transformation cannot happen without you,” he said while addressing the business community, and added that sustained collaboration would determine whether Pakistan could translate stabilization into durable, inclusive growth.
Responding to a question, Finance Minister Muhammad Aurangzeb said the economy was expected to grow by around 3.5 percent during the current fiscal year despite the adverse impacts of floods. He added that Pakistan would be well-positioned to achieve a GDP growth rate of 5 to 6 percent over the next two to three years.
However, the minister stressed the need for placing the economy on sustainable and resilient foundations, ensuring that growth remained stable and did not fall back into cycles of imbalance.
He said long-term consistency in policies, improved productivity, and structural adjustments were essential to maintain the desired growth trajectory.
Commenting on Pakistan’s position in the global digital-finance landscape, the minister referred to recent Chainalysis findings showing Pakistan ranked third worldwide in cryptocurrency participation. He said the government could no longer afford to ignore the growing crypto ecosystem.
He added that a Crypto Council had already been constituted and a dedicated regulatory authority was being put in place to ensure transparency, consumer protection, and compliance with global financial standards.
The minister said that the meeting of the 11th National Finance Commission (NFC) Award would be convened on December 4, adding that the upcoming session would promote constructive engagement between the Federation and the provinces. He said the forum would provide an important opportunity to build consensus on fiscal matters and “carry the country forward” through a more balanced and cooperative financial framework.
The minister also highlighted the government’s reforms in public expenditure management, noting that the new pension scheme had already been introduced and formally notified. He said the revised framework was designed to reduce the growing fiscal burden on the national exchequer and ensure long-term sustainability of public-sector pension liabilities.
The shift, he added, would gradually move the system toward a more manageable and financially disciplined structure.