Finance Minister Muhammad Aurangzeb has stated that Pakistan is making strides toward economic stability, evidenced by rising foreign exchange reserves, declining inflation, improved credit ratings, and reduced fiscal deficits.
In the Atlantic Council’s GeoEconomics Center on the theme “Challenges and Opportunities for the Pakistani Economy through 2025 and Beyond,” Aurangzeb noted that Pakistan has achieved a 29% increase in tax revenue for the current fiscal year.
“Effective debt management has led to savings of nearly Rs1 trillion,” he stated.
He described the implementation of a tax on agricultural income as a historic measure, signifying progress towards a more formalized economic structure.
He noted that key indicators of progress include rising foreign exchange reserves, easing inflation, an improved credit rating, and a strengthening fiscal balance.
Aurangzeb stressed that while these developments are promising, achieving macroeconomic stability is merely a prerequisite for sustainable growth and reform, not the ultimate goal.
Using a cricket analogy, he stated that Pakistan has “some runs on the scoreboard,” but must steer clear of repeating past cycles of boom and bust.
Regarding fiscal policy, Aurangzeb recognized the need for a careful balance between enforcing fiscal discipline and allowing space for social and developmental expenditures.
Moreover, he stated that Pakistan’s large informal economy and the substantial cash circulation, totaling Rs9 trillion, present a significant challenge.
The minister emphasized the need to formalize sectors such as retail, real estate, agriculture, and wholesale, and highlighted the potential of end-to-end digital solutions, including AI-driven audits, track and trace systems, and faceless customs, to address leakages and enhance compliance.
He reiterated the necessity of rebuilding public trust in the Federal Board of Revenue (FBR) and called for reforms in personnel, processes, and technology.
Addressing demographic challenges, the Minister identified population growth and climate change as critical issues that demand immediate and coordinated action.
He outlined the government’s initiatives to collaborate with provinces in creating a comprehensive strategy for family planning, maternal health, and education, with a particular focus on girls’ education.
Aurangzeb linked family planning to child stunting, noting that nearly 40% of Pakistani children under five are affected by stunting, which has significant long-term consequences for human capital development.
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