Aurangzeb talks about approach to economy

ISLAMABAD: To ensure sustainable development, Pakistan will be taken towards export and productivity-led growth, Finance Minister Muhammad Aurangzeb said here on Saturday.

While addressing a press conference, the finance minister said the auto sector has started exports in the last two months, which is a good sign for the country’s economy. He added that there should be exports in each sector.

The minister said there is a rise in foreign exchange reserves on the back of very strong remittances and expressed the confidence that the remittances will touch a record $36 billion this fiscal year.

PMO takes big step towards fueling economy

He further said that exports are also holding firm with 7 per cent growth. By the end of June, the country’s foreign exchange reserves will reach $13 billion.

He said, “The ECC is keeping a special eye on inflation, and it has taken new steps to monitor the situation.”

Talking about FBR revenue collection, the finance minister said that it will increase by 32.5 per cent this year, emphasising that they are deepening the tax base.

He revealed that 413 billion rupees was collected from the traders, which is up from 189 billion rupees last year.

Aurangzeb said the government is undertaking structural reforms in order to make the current IMF programme the last one. He expressed hope that the IMF’s Executive Board would soon approve the second tranche of one billion dollars.

He told that an International Monetary Fund (IMF) mission would be here in mid-May. He also said that a Pakistani delegation would leave for the US to discuss the new tariffs.

The minister elaborated that two committees were formed for this purpose including a steering group, led by himself and a working group, headed by the commerce secretary.

He added that there were meetings over the last couple of days and will continue with a view to transforming challenges into opportunities.

The finance minister said that the government was working on a package, and when finalised, it could go forward for discussions with the US administration. The new tariffs situation could be turned into a win-win situation for both Pakistan and the US, he hoped.

The minister also observed that there has been a significant decline in the interest rate and there is potential for further reduction.

The central bank’s policy rate, after being slashed by 1,000bps from 22pc since June 2024 in six intervals, now stands at 12pc.

The finance minister announced that in the upcoming fiscal year, a system for salaried individuals to pay taxes themselves will be implemented.

Copyright Business Recorder, 2025