ISLAMABAD, Jul 29 (APP): In a significant engagement with the diplomatic community, the Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, and the Minister of State for Finance, Bilal Azhar Kayani, jointly addressed a distinguished gathering of ambassadors, high commissioners, and senior diplomats from countries including the USA, UK, European Union, Italy, Germany, Canada, Australia, Switzerland, Japan, the Netherlands, and Saudi Arabia.
The high-level strategic briefing presented an overview of Pakistan’s recent economic achievements, tax reform agenda, and key developments in the country’s Power sector, said a press release issued by the Ministry of Finance.
Bilal Azhar Kayani offered a data-backed assessment of Pakistan’s macroeconomic landscape, highlighting a shift from stabilization to sustained reform. He noted that GDP growth for fiscal year 2024–25 reached 2.7 percent, with per capital income increasing by 10 percent to $1,824.
Fiscal discipline was reflected in a primary surplus of 3.1 percent of GDP—the highest in two decades—while annual inflation fell to a nine-year low of 4.5 percent. The policy rate was halved from 22 percent to 11 percent, and the debt-to-GDP ratio declined to 69 percent, underscoring improved fiscal and monetary management.
The external sector also showed marked resilience. Pakistan recorded a $2.1 billion current account surplus for the fiscal year – first in 14 years, and highest in 22 years, supported by strong remittances, growing exports, rising foreign direct investment, and stable foreign exchange reserves exceeding $14.5 billion (State Bank’s portion, total aound $20 billion).
These improvements were achieved without any significant reliance on external borrowing. The country’s improved fiscal standing has earned positive recognition internationally, including sovereign credit rating upgrades and rising investor and business confidence, reflected in the strong performance of the Pakistan Stock Exchange.
The Chairman FBR elaborated on the FBR Transformation Plan, a comprehensive reform framework based on three pillars—people, process , and technology. Real tax collection increased by 46 percent, with enhanced compliance and enforcement measures contributing to sustained revenue growth.
The reform agenda includes digitization of invoicing, production monitoring systems, AI-based audit tools, national goods tracking, improved taxpayer services, and strengthened integration with financial data sources. These measures aim to broaden the tax base, increase transparency, and simplify compliance.
He shared how the FBR transformation has started yielding results; from highest growth in taxes, to having the collection increasingly through compliance and enforcement. He also mentioned the FBR Tax-to-GDP has been the highest ever at 10.24% in FY 2025, compared to 8.8% in FY 2024.
Complementing the economic reforms, Federal Minister for Power Sardar Awais Ahmad Khan Leghari highlighted the transformation underway in the energy sector. He emphasized that ensuring affordable and reliable energy is essential for sustaining economic growth.
Recognizing that energy demand rises with economic expansion, the government is pursuing strategic reforms to improve efficiency, enhance governance, and realign tariffs to support productivity and competitiveness.
The minister noted that over the years, certain structural challenges had emerged—such as high electricity tariffs and inefficiencies in pricing mechanisms—which affected affordability for both households and industries. These challenges also contributed to pressures on public finances. To address them, the government has undertaken a broad-based reform program centered on tariff rationalization, fiscal responsibility, and operational improvements. As a result, progress has been made in stabilizing the circular debt during FY 2025.
He also pointed out the importance of modernizing energy planning, given the seasonal variations in electricity demand, regional supply constraints, and the growing role of distributed generation. The government is adapting long-term planning and market design accordingly.
The need for competitively priced energy for industry was also highlighted, with reforms geared toward reversing the decline in industrial electricity consumption and encouraging reinvestment in productive sectors.
The audience was also briefed on efforts to improve the performance of electricity distribution companies, where infrastructure upgrades and strengthened governance are helping reduce technical and commercial losses. These measures are being implemented with a focus on regional equity and institutional coordination.
A cornerstone of these reforms is the establishment of the Power Planning & Monitoring Company (PPMC), a professional entity responsible for integrated energy planning, monitoring, and oversight to ensure long-term sectoral stability and transparency.
The Federal Minister for Power also drew the attention of the diplomatic audience to the significant investment potential within Pakistan’s power sector, estimating opportunities worth $2 to $3 billion across various segments of the energy value chain.
He invited global power utility companies, investors, and industry leaders to explore these prospects, particularly in areas such as grid modernization, renewable energy integration, distribution efficiency, and energy services. Emphasizing the government’s commitment to regulatory reforms and institutional transparency, the Minister assured participants that Pakistan welcomes strategic partnerships that can contribute to a more resilient and forward-looking energy ecosystem.
He also shared the progress on the privatization of the Electricity Distribution Companies, with the first batch of three being restructured to be privatized by early 2026, where he called for potential global investors across the utility chains to come forward and participate.
As a recurrent theme during their separate presentations, both ministers reaffirmed Pakistan’s commitment to responsible economic management and modernizing key public sectors in line with global standards. They emphasized that these reforms are part of a strategic, forward-looking national agenda designed to enhance competitiveness, transparency, and resilience.
The diplomatic participants welcomed the comprehensive and candid briefing and acknowledged the government’s resolve to deliver meaningful and sustainable reform.