Federal Finance Minister Muhammad Aurangzeb on Wednesday pledged to close tax loopholes, enhance investor confidence, and maintain economic reforms, as he addressed the Rawalpindi Chamber of Commerce and Industry’s Independence Day event.
Aurangzeb said international institutions had welcomed Pakistan’s reform measures, while recent Gallup surveys showed rising economic confidence.
He noted a 60% growth in the stock exchange, an increase in new investors, and 250,000 new company registrations.
Aurangzeb suggested the key policy rate could be cut further this year, citing falls in average and core inflation.
Earlier in May, governor SBP, in a press conference along with other Monetary Policy Committee (MPC) members, announced a 100 bps cut, highlighting an improved inflation outlook and signs of moderate economic recovery.
Beating the market expectations of a 0-50bps cut, the central bank reduced the policy rate by 100bps to 11% in a meeting,” wrote Topline Securities. “We expect interest rates to come down to 10% by Dec 2025.”
Read: Policy rate slashed to 11%
The minister said the government had finalised economic growth-focused agreements with the IMF, reached a favourable tariff deal with the United States, and was working on key accords with China.
Panda bonds would be issued by year-end, and a benchmark for Sukuk bonds had been set, the finance czar.
Aurangzeb further highlighted ongoing rightsising of 45 ministries, accelerated privatisation of state enterprises, and reductions in electricity tariffs, with further energy cost improvements expected.
He assured that taxation reforms would not burden the salaried class and that the prime minister was personally overseeing FBR’s transformation. Monthly meetings with chambers would be held to address business concerns.
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Calling for unity, Aurangzeb said the private sector must lead economic growth, with the government’s role being to provide a favourable business climate.
