Aurangzeb tells Senate body: Govt plans foreclosure laws to boost housing finance

ISLAMABAD: In a diplomatic embarrassment for India again, this time the World Bank Board approved $700 million for Reko Diq project – a game changer, which is expected to generate exports worth $2.8 billion by 2028.

This was stated by Finance Minister Muhammad Aurangzeb while briefing the Senate Standing Committee on Finance and Revenue.

Aurangzeb also announced that government will introduce foreclosure laws to encourage bank-led financing in the housing sector, besides a new mechanism will be developed to eliminate non-filers to document the cash economy.

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The committee commenced its first session to deliberate on the Finance Bill, 2025, including the Annual Budget Statement presented in the House in accordance with Article 73 of the Constitution.

The committee meeting chaired by Saleem Mandviwalla, here on Friday.

Aurangzeb said that India tried again like it attempted in creating hurdles in the approval of the International Monetary Fund (IMF) loan. This time again India failed. This approval of $700 million which will be provided by the IFC was granted during a World Bank Board meeting in Washington. It is a significant economic diplomatic victory for Pakistan and a major setback for India, which had actively lobbied against the funding.

Aurangzeb delivered an overview of the budget, economic progress, and the geopolitical headwinds confronting Pakistan.

“We have not imposed any new tax in the budget. Instead, we have taken new tax measures worth Rs312 billion through compliance and enforcement”, said the minister, and confirmed that these steps were endorsed by the IMF under tax enforcement commitments.

The finance minister shared economic data remarking that exports have increased by 7.8 percent in the current fiscal year. Last year’s exports were $29 billion, this year we have already hit $30 billion in 11 months, he added.

He said that there are no longer obstacles to opening Letters of Credit (LCs), and anyone saying otherwise is spreading misinformation. Facing questions on privatisation, Aurangzeb admitted, “It must be accepted that privatisation targets were not achieved.” However, he reassured the committee that “PIA has now been brought back into the privatisation stream.”

Responding to the long-standing debate on agricultural taxation, he asserted, “Earlier it was said agriculture tax can never be imposed. Now, they say it can’t be collected. We will collect it—just give us the chance.” Provinces are set to begin agricultural income tax collection from July 1, 2025, he added.

Copyright Business Recorder, 2025