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ISLAMABAD: Pakistan&rsquo;s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, said, while Pakistan must &ldquo;stay the course&rdquo; on structural reforms, urgent &ldquo;course correction&rdquo; is needed in two existential areas: population growth and climate change. Addressing &ldquo;The Future Summit&ndash;9th Edition&rdquo; in Karachi, he called for a national sense of urgency to tackle population growth, child stunting, and learning poverty, and to fully utilize the $2 billion climate-related financing available under the World Bank&rsquo;s Country Partnership Framework, said a press release issued by Pakistan&rsquo;s Ministry of Finance on Wednesday. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-1" scrolling="no" frameborder="0" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 696px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-1&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1985956240984527013&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=61d154fee454dda7341ee4a3ef7ad9edb79436f9&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px"></iframe></div></div> Aurangzeb called for a fundamental shift from reactive policymaking to a forward-looking, reform-driven approach aimed at stabilizing Pakistan&rsquo;s economy, restoring investor confidence, and setting a sustainable course for growth. He outlined the government&rsquo;s commitment to structural reforms, fiscal discipline, and strategic partnerships to redefine the country&rsquo;s economic direction. In his remarks, the minister shared global and national perspectives drawn from his recent engagements in Washington and Riyadh, noting that the world economy has demonstrated greater resilience than anticipated, aided by structural reforms and enhanced private sector participation in many countries. &lsquo;Macroeconomic stability&rsquo;He underscored the growing global consensus on scaling back government roles and promoting productivity-led, private sector-driven growth, alongside opportunities in artificial intelligence and technology-led innovation. Turning to Pakistan, the finance minister reaffirmed that macroeconomic stability has been achieved and externally validated, with major rating agencies upgrading Pakistan&rsquo;s outlook, and the IMF&rsquo;s second review under the ongoing program concluded successfully. However, he emphasized that macro stability &ldquo;is not an end in itself but a means to an end,&rdquo; forming the foundation for sustained investment and long-term growth. &lsquo;Growing investor confidence&rsquo;&nbsp;Highlighting encouraging trends, he noted that corporate profitability in Pakistan has risen by 14% during the first nine months of 2025, and that 73% of CEOs in the latest OICCI (Overseas Investors Chamber of Commerce &amp; Industry) survey now consider Pakistan a viable investment destination, up from 61% earlier.&nbsp; These indicators, he said, reflect growing investor confidence and the country&rsquo;s improving direction. Senator Aurangzeb pointed to a &ldquo;confluence of favorable factors&rdquo;, including macro stability and geopolitical tailwinds, that now position Pakistan to convert bilateral support into trade and investment flows led by the private sector. He reaffirmed the government&rsquo;s commitment to providing an enabling ecosystem in priority sectors, including minerals and mining, IT, agriculture, pharmaceuticals, and the blue economy. Google&rsquo;s office in Pakistan&nbsp;Discussing technological advancement and the knowledge-based economy, the minister welcomed Google&rsquo;s decision to open an office in Pakistan and to make the country a regional technical and export hub. He emphasized the need to equip youth with digital and technical skills to help them capture higher-value opportunities in coding, blockchain, and AI-driven sectors. On structural reforms, Aurangzeb stressed that Pakistan is &ldquo;no longer in a design phase but in the implementation mode.&rdquo; 900,000 new tax filers&nbsp;He outlined progress in areas such as taxation, energy, state-owned enterprises, privatization, public finance management, rightsizing of government, pension reforms, and debt servicing. He highlighted the use of AI-led monitoring and invoicing systems to curb tax leakages, the addition of 900,000 new tax filers, and the World Bank&#39;s international recognition of Pakistan&rsquo;s reform efforts. He reaffirmed the government&rsquo;s commitment to privatization, noting the recent acquisition of a local bank by a major UAE conglomerate and ongoing work on transactions involving the PIA and power distribution companies. Defined-contribution pension schemeHe also shared updates on the right-sizing of federal ministries and departments, the closure of loss-making entities such as the Utility Stores Corporation and the Pakistan Agricultural Storage and Services Corporation, and the transition to a defined-contribution pension scheme for new government entrants. He concluded by reaffirming the government&rsquo;s resolve to sustain economic reforms, strengthen resilience, and advance a reform agenda focused on long-term sustainability and human development.

Taxation

Business

Notes corporate profitability in Pakistan has risen by 14% during the first nine months of 2025; 73% of CEOs in the latest overseas investors survey consider Pakistan a viable investment destination.

Pakistan’s finance minister urges ‘course correction’ on population, climate challenges 

ISLAMABAD: Pakistan&rsquo;s Federal Minister for Finance and Revenue Muhammad Aurangzeb has observed that &ldquo;improved macroeconomic fundamentals have enabled Pakistan to regain access to international commercial markets after more than two years.&rdquo; Aurangzeb, in an interview with CGTN America (China Global Television Network) during his visit to Washington DC for the IMF-World Bank Annual Meetings, outlined Pakistan&rsquo;s continuing progress on macroeconomic stabilization, structural reforms, and growth-oriented policy measures, said a press release issued by Pakistan&rsquo;s Finance Division on Wednesday. <div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowfullscreen="true" style="position: static; visibility: visible; width: 550px; height: 585px; display: block; flex-grow: 1;" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1980874049086529583&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Farticles%2F&sessionId=18d9926d3d3369db3b05cd5b23637d87fea6e65e&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</iframe></div></div> The minister noted that over the past year, Pakistan&rsquo;s economy has achieved notable consolidation in macroeconomic indicators. &ldquo;Fiscal and external accounts have stabilized, the exchange rate has remained steady, and foreign exchange reserves have increased to 2.5 months of import cover,&rdquo; Aurangzeb stated. He noted that &ldquo;inflation has returned to single digits, the policy rate has been reduced by half, and all major global rating agencies, including Fitch, S&amp;P, and Moody&rsquo;s, have upgraded Pakistan&rsquo;s outlook for the first time in nearly three years.&rdquo; Growth forecast&nbsp;The finance minister informed that the second review under the International Monetary Fund (IMF)&rsquo;s Extended Fund Facility had recently been completed in Islamabad, resulting in a staff-level agreement. The Fund&rsquo;s management has expressed continued confidence in Pakistan&rsquo;s reform agenda, which remains focused on structural adjustments in taxation, energy, public finance, and privatization, he said, according to the press release. The IMF has raised Pakistan&rsquo;s economic growth forecast to 3.6% for the current fiscal year, exceeding the World Bank&rsquo;s 2.6% estimate, while cautioning of possible higher inflation and current account deficit. The IMF states, &ldquo;the severe flooding in Pakistan during the third quarter of 2025 may have more adverse effects on growth, inflation, and the current account than currently estimated, although these impacts remain highly uncertain,&rdquo; making the figures provisional.&nbsp;Revival of privatization programThe finance minister highlighted the revival of the privatization program, noting the successful completion of the first transaction of the current fiscal year involving the sale of a small bank to a UAE-based conglomerate, with additional investment planned in digital expansion, the Finance Division&rsquo;s press release said. &ldquo;The privatization of the national airline is also expected to be finalized before the end of the fiscal year,&rdquo; Aurangzeb said. He observed that &ldquo;improved macroeconomic fundamentals have enabled Pakistan to regain access to international commercial markets after more than two years.&rdquo; &ldquo;The government has recently secured borrowing from Middle Eastern banks and is preparing to issue the country&rsquo;s inaugural Panda Bond before the end of the year,&rdquo; Aurangzeb said. He added that &ldquo;Pakistan had smoothly repaid a $500 million Eurobond in September and is well positioned to meet the next $1.3 billion repayment due in April 2026.&rdquo;&nbsp;&lsquo;Existential challenge&rsquo;&nbsp;Addressing the economic impact of recent flooding, the minister emphasized that climate change remains &ldquo;an existential challenge&rdquo; for Pakistan. &ldquo;While agriculture, particularly rice and cotton crops, has suffered due to flooding, growth is still expected to remain close to 3.5% for FY2025-26.&rdquo; On Pakistan&rsquo;s partnership with China, Aurangzeb reaffirmed &ldquo;the long-standing and robust nature of bilateral relations, highlighting the launch of CPEC Phase 2.0.&rdquo; The finance minister said the new phase focuses on industrial cooperation, special economic zones, and private-sector-led investments. &ldquo;During the prime minister&rsquo;s recent visit to Beijing, 24 joint venture agreements were signed across key sectors such as mining, agriculture, information technology, artificial intelligence, and pharmaceuticals, signaling strong investment traction.&rdquo; Digital transformation&nbsp;The minister, while elaborating on the government&rsquo;s digital transformation agenda, said: &ldquo;Efforts are underway to digitize all government payments and strengthen digital infrastructure across sectors.&rdquo; &ldquo;These initiatives have contributed to improved transparency and a broader tax base, reflected in the increase of the tax-to-GDP ratio from 8.8% to 10.2%. The integration of artificial intelligence and data analytics has also significantly enhanced the efficiency of tax administration,&rdquo; he added. Trade policy&nbsp;Discussing trade policy, Aurangzeb mentioned that &ldquo;Pakistan recently concluded tariff negotiations with the United States, securing favorable rates that are expected to benefit textile exporters, particularly in the home textile segment.&rdquo; He underlined Pakistan&rsquo;s broader commitment to trade diversification, noting the government&rsquo;s increased engagement with Central Asian republics and South-South economic cooperation frameworks. In reference to the Shanghai Cooperation Organization Summit held in Tianjin, China, the finance minister expressed support for &ldquo;President Xi Jinping&rsquo;s Global Governance Initiative, which emphasizes sovereign equality, the rule of law, and multilateralism.&rdquo;&nbsp; He noted that these principles align closely with Pakistan&rsquo;s approach to global engagement and cooperation. Aurangzeb underscored that &ldquo;Pakistan remains firmly committed to macroeconomic stability, structural reform, and sustainable, inclusive growth, with a clear focus on strengthening resilience, encouraging investment, and advancing the country&rsquo;s long-term development agenda&rdquo;, the press release concluded.

‘Fiscal and external accounts have stabilized, the exchange rate has remained steady, and foreign exchange reserves have increased to 2.5 months of import cover;’ ‘inflation has returned to single digits, the policy rate has been reduced by half’ -- Finance Minister 

Financial stability has helped Pakistan regain access to international markets: finmin

ISLAMABAD: Pakistan&#39;s Federal Minister for Finance Senator Muhammad Aurangzeb has departed for the United States to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank.&nbsp;According to the Ministry of Finance, the minister will represent Pakistan at the plenary sessions of both international financial institutions and hold meetings with senior officials of the IMF, World Bank, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA).&nbsp;During his visit, Senator Aurangzeb will hold a one-on-one meeting with World Bank President Ajay Banga and IMF Managing Director Kristalina Georgieva. He will also participate in sessions of the G24, the Middle East, North Africa and Pakistan (MENAP) platform, and the World Economic Forum (WEF).&nbsp;The finance minister will deliver a keynote address at the MENAP Forum and attend a regional roundtable organized by the World Bank on FBR&rsquo;s digital transformation. Tax authorities from various countries will also share their reform experiences at the event.&nbsp;His schedule includes meetings with senior officials of the White House, the US State Department, the Treasury Department, and the International Development Finance Corporation (DFC).&nbsp;The minister is also expected to meet his counterparts from China, the United Kingdom, Saudi Arabia, T&uuml;rkiye, and Azerbaijan.&nbsp;During the six-day visit, Senator Aurangzeb will participate in more than 65 events, including sessions with global investors, credit rating agencies, and think tanks, where he will highlight Pakistan&rsquo;s economic outlook and investment opportunities.

Economy

Finance Ministry says Aurangzeb will hold meetings with senior officials of the IMF, World Bank, International Finance Corporation, and Multilateral Investment Guarantee Agency.

Pakistan's finance minister departs for US to attend IMF, World Bank meetings

ISLAMABAD: Remittances to Pakistan are projected to grow to $41-43 billion in the current fiscal year, signaling increased confidence in the country&rsquo;s economic outlook, Pakistan&rsquo;s Finance Minister Muhammad Aurangzeb announced at the Pakistan Business Summit in Peshawar, the northwestern city of Pakistan. Aurangzeb, while delivering the keynote address, reported a significant improvement in remittances, which reached $38 billion last year and are projected to grow to $41-43 billion in the current fiscal year, said a press release issued by the Press Information Department of Pakistan on Thursday. The finance minister pointed out that Pakistan successfully repaid $500 million in Eurobond obligations in September without market disruption and is well-positioned to meet the upcoming $1.3 billion repayment in April 2026. Private sector-led growth&nbsp;In his remarks, the finance minister commended the organizers for convening a high-profile forum in Peshawar and underlined the government&rsquo;s commitment to creating an enabling environment for the private sector to lead Pakistan&rsquo;s economic growth.&nbsp; He emphasized that the government&rsquo;s role is to ensure macroeconomic stability, introduce structural reforms, and provide the right ecosystem for business and investment. Forex reserves&nbsp;Reviewing recent economic progress, Aurangzeb highlighted a sharp decline in financing costs following reductions in the policy rate, improved foreign exchange reserves that cover nearly three months of imports, and stability in the exchange rate.&nbsp; He noted that these developments have strengthened investor confidence and facilitated the repatriation of dividends and profits. Addressing structural reforms, Aurangzeb reaffirmed the government&rsquo;s resolve to implement comprehensive tax reforms, separating tax policy from tax administration to restore credibility and consistency for investors.&nbsp; He emphasized the ongoing reforms in state-owned enterprises, privatization efforts, and energy pricing as key components of the economic reform agenda. Export-led growth&nbsp;The finance minister also discussed Pakistan&rsquo;s export-led growth strategy, tariff reforms aimed at reducing duties on raw materials and intermediate goods, as well as measures to attract efficient foreign direct investment (FDI).&nbsp; He cited recent engagements in Beijing, Riyadh, Washington, and New York as evidence of renewed investor confidence, including the signing of 24 joint venture agreements with Chinese companies.&nbsp; He further announced plans for Pakistan&rsquo;s inaugural Panda Bond issuance before the end of the year, opening access to China&rsquo;s deep capital markets. Aurangzeb emphasized that Pakistan&rsquo;s path to sustainable growth relies on enhanced competitiveness, private sector dynamism, and closer coordination between the federation and its provinces.&nbsp; PKR4.3 trillion development budgets He also emphasized the importance of prioritizing the effective utilization of the PKR4.3 trillion national development budget for infrastructure, health, and education. Highlighting long-term challenges, the finance minister identified climate change and population growth as existential issues for Pakistan.&nbsp; He emphasized the urgency of addressing child stunting, learning poverty, and climate resilience alongside economic recovery, noting that these factors directly affect Pakistan&rsquo;s future productivity and leadership. Concluding his address, Aurangzeb reaffirmed the government&rsquo;s commitment to steering Pakistan towards sustainable economic recovery, global competitiveness, and resilience, while ensuring that reforms and growth translate into tangible benefits for the people of Pakistan. The summit, organized under the patronage of the governor of Khyber Pakhtunkhwa, carried the theme &ldquo;Shaping What&rsquo;s Next&rdquo; and brought together policymakers, business leaders, and corporate executives to discuss Pakistan&rsquo;s economy, innovation, and global competitiveness.

Finance Minister Aurangzeb emphasizes the importance of private sector-led growth, structural reforms, macroeconomic stability, and export-driven development at the Pakistan Business Summit, highlighting improved investor confidence, rising remittances, and critical long-term challenges, such as climate change.

Pakistan's remittances expected to grow to $43B in FY2025-26: Ministry of Finance

ISLAMABAD: Pakistan&rsquo;s Economic Coordination Committee (ECC) has approved the commercial import of used vehicles for the first time in years, an official statement released by the finance division said, signaling a major shift in the country&rsquo;s trade policy.&nbsp;Chaired virtually from New York by Finance Minister Muhammad Aurangzeb, the ECC approved amendments to the Import Policy Order, 2022, allowing the import of used vehicles up to five years old until June 30, 2026. After that, the age limit will be lifted entirely.&nbsp;According to the official statement, &ldquo;such commercial importation would remain subject to strict compliance with prescribed environmental and safety standards.&rdquo;&nbsp;To moderate the impact on local industry, a 40% Regulatory Duty (RD) will be imposed on these imports, in addition to existing customs duties.&nbsp;&ldquo;This enhanced duty will remain applicable until 30th June 2026. Thereafter, the duty shall be reduced gradually by 10% points per year, reaching zero by 2029-30,&rdquo; the Finance Division said in a press release.&nbsp;Analysts say the move could help diversify Pakistan&rsquo;s auto market and make vehicles more affordable, though concerns over environmental enforcement remain.&nbsp;In a separate development, the ECC approved a technical supplementary grant of Rs800 million [approximately $2.8 million for the Pakistan Virtual Asset Regulatory Authority (PVARA), as part of efforts to regulate the country&rsquo;s growing digital asset space.&nbsp;The meeting included key cabinet members overseeing petroleum, energy, and food security, as well as senior regulatory officials.

The finance division has approved limited commercial imports of used vehicles with environmental conditions and new duties. The government also allocated $2.8 million to strengthen regulation of digital assets through a new authority.

Articles tagged with "Muhammad Aurangzeb"

Pakistan’s finance minister urges ‘course correction’ on population, climate challenges

Financial stability has helped Pakistan regain access to international markets: finmin

Pakistan's finance minister departs for US to attend IMF, World Bank meetings

Pakistan's remittances expected to grow to $43B in FY2025-26: Ministry of Finance

Pakistan opens doors to used car imports