Finance Minister Muhammad Aurangzeb has reaffirmed Pakistan’s commitment to sustainable, export-led economic growth. He said the government would continue reforms to maintain stability and strengthen the economy.
He made these remarks at a workshop titled “Reforms for a Modern and Growth-Friendly Tax System” in Islamabad.
Pakistan Focuses on Economic Stability
Aurangzeb said Pakistan’s economy was moving in the right direction. He stressed that the government would not allow the country to return to the boom-and-bust cycle.
He highlighted several economic indicators to support his assessment. Pakistan’s fiscal deficit has reached a 22-year low, while the country has recorded primary surpluses for three consecutive years.
Moreover, the Federal Board of Revenue’s tax-to-GDP ratio has increased from 8.8% to 10.3%. Tax revenues have also grown by 40% over the last two fiscal years.
Tax Reforms Remain a Key Priority
The finance minister described taxation as a critical part of the government’s structural reform agenda. He highlighted ongoing efforts in energy, state-owned enterprises, privatisation, public finance, pensions and tariffs.
Furthermore, Aurangzeb stressed the need for effective tax administration to support sustainable and high-quality economic growth.
He also said Pakistan’s foreign exchange reserves had reached their highest level in the country’s history, providing approximately three months of import cover.
IMF Highlights the Next Growth Challenge
Jihad Azour, Director of the International Monetary Fund’s Middle East and Central Asia Department, acknowledged Pakistan’s progress toward macroeconomic stability.
He said the country had rebuilt confidence, strengthened its external buffers and supported a gradual economic recovery.
However, Azour noted that the next challenge was to turn this stability into stronger and more sustainable economic growth.
Private Sector to Drive Future Growth
Azour reaffirmed the IMF’s commitment to supporting Pakistan’s economic development. He emphasized the importance of building a more productive economy led by a stronger private sector.
Overall, the government aims to consolidate economic stability through tax reforms, fiscal discipline and structural changes. Meanwhile, stronger exports, private investment and productivity will remain essential to achieving sustainable long-term growth.
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