Fiscal consolidation delivering results, says Aurangzeb as govt courts investors in London

Pakistan’s fiscal consolidation is delivering results through a primary surplus, deficit compression and stronger revenue mobilisation, Finance Minister Muhammad Aurangzeb said, as the government sought to attract international investment at a roundtable with leading investors and global financial firms.

The remarks came during a “Pakistan Investment Roundtable” hosted by the Pakistan High Commission, London, with participation from leading investors and global financial management firms in London.

Finance Minister Muhammad Aurangzeb attended as the keynote speaker. Governor of the State Bank of Pakistan Jamil Ahmed, Advisor to Finance Minister Khurram Schehzad, and High Commissioner of Pakistan to the UK Tipu Usman were also present, read a statement on Thursday.

In his address, Aurangzeb stated that the Government of Pakistan was committed to macro-economic stabilisation and was vigorously pursuing sustained growth. He underscored that the structural reforms agenda is being implemented, which also aims at enabling the private sector.

Aurangzeb apprised that the government has undertaken State-owned Enterprises (SOEs) reforms in addition to privatisation. He added that energy sector reforms, financial transparency and ease of doing business will further reinforce the government’s vision of macro-economic stability.

The finance minister said that expanding the tax base and enforcement was necessary for economic growth. He informed that discretionary powers of tax authorities are eliminated and there is no preferential treatment for taxation. However, there have been no additional taxes levied on the salaried class.

Aurangzeb stated that Pakistan’s economy had a setback due to major country-wide flooding last year and the recent war in the Middle East that has adversely affected oil prices across the globe.

He stated that Pakistan is open for business with renewed interest from international investors. Pakistan has completed all IMF reviews on schedule that have been validated by three rating upgrades.

Aurangzeb also engaged with the representatives of financial institutions in a Q&A session with discussions focusing on Pakistan’s economy, investment climate, partnership with international organisations, and potential opportunities in various sectors.