“Pakistan’s Economy Achieves Macroeconomic Stability, Says Finance Minister Muhammad Aurangzeb
Finance Minister Muhammad Aurangzeb announced that Pakistan’s economy has reached a level of macroeconomic stability, with the number of tax filers doubling over the past year. An additional 723,000 individuals have joined the tax net, bringing the total from 1.6 million to 3.2 million.
During a press conference in Islamabad, he emphasized that non-filers will face significant restrictions, including limitations on purchasing vehicles and property, as well as challenges in banking transactions.
Aurangzeb highlighted several positive economic indicators: inflation has fallen to single digits, exports have surged by 29 percent, and IT sector exports have shown remarkable growth. He noted that foreign exchange reserves have reached record highs and the stock market’s strong performance reflects growing investor confidence.
While acknowledging the achievement of macroeconomic stability, the finance minister clarified that this is an ongoing process. He underscored the need for the private sector to take the lead in driving future growth and announced a 4.5% reduction in the policy rate in response to declining inflation.
The government is also advancing structural reforms, including plans to reduce the size of government institutions by eliminating 150,000 positions across various ministries. Six ministries will be dissolved, and two will be merged to streamline governance.
In terms of tax reforms, Aurangzeb stated that only registered wholesalers will be permitted to buy directly from manufacturers, and technology will play a pivotal role in tax collection through the use of RFID and video analytics. The Federal Board of Revenue (FBR) will enhance its audit capabilities by hiring 2,000 chartered accountants through a third-party system.
He acknowledged that while these reforms may present short-term challenges, they are essential for Pakistan’s long-term sustainable development. The finance minister also pointed to two significant challenges: the unsustainable population growth rate of 2.5% and the urgent threat of climate change. He stressed the importance of preparing for these issues while continuing economic restructuring, with the aim of making this the last IMF loan program for the country.”
