Finance Minister Aurangzeb updates Pakistan Business Council on US tariffs

ISLAMABAD: A delegation of the Pakistan Business Council (PBC), led by Chief Executive Officer Javed Kureishi and Chairperson Dr Zeelaf Munir, called on the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division Wednesday.

Welcoming the delegation, the Finance Minister briefed the PBC leadership on the current state of the economy, noting that macroeconomic indicators are moving in the right direction. He underlined that the government’s reform agenda—including state-owned enterprise reforms, the privatization programme, and efforts to right-size the public sector—is progressing well, laying the foundation for long-term stability.

Sharing recent developments, Senator Aurangzeb informed the delegation about the tariff negotiations with the United States, which present significant opportunities for Pakistani exporters due to emerging regional competitive advantages.

US cuts Pakistan tariff to 19% from 29% after trade deal

He encouraged PBC and similar representative bodies to take the lead in initiating targeted business-to-business engagements, for enhancing bilateral trade and investment.

The Minister emphasized the importance of economic stability, highlighting the exchange rate and policy rate stability and the expectations of these trends to continue to ensure long-term stability. He reaffirmed the government’s commitment to maintaining macroeconomic stability while creating an enabling environment for business and investment.

He added that the government fully recognises the importance of upgrading port, road, and rail infrastructure to further support domestic commerce and expand external trade opportunities.

The Minister also highlighted the outcomes of the Prime Minister’s recent visit to China, which included high-level strategic dialogues, robust business-to-business interactions, the formation of specialized working groups, and an unprecedented level of private sector representation. He noted that these engagements have already resulted in substantial traction and the signing of multiple MoUs, reflecting the government’s strong commitment to advancing bilateral economic ties.

Senator Aurangzeb further shared the government’s decision to relocate the Tax Policy Office from the Federal Board of Revenue (FBR) to the Finance Division, ensuring that all tax policy matters are aligned with broader economic policymaking. He also touched upon the ongoing flood situation, outlining the government’s efforts in rescue and relief, infrastructure rehabilitation, and need-based assessments while drawing on lessons learned from the 2020 floods.

On the inflation front, the Minister expressed confidence that price pressures will remain under control, supported by reduced oil prices that are keeping imported inflation in check. He noted that the government is closely monitoring developments and that the Steering Committee on Inflation, constituted by the Prime Minister, has already held its first meeting under his chairmanship, with the second meeting scheduled later this week.

The PBC delegation reciprocated the Finance Minister’s sentiments, appreciating the government’s economic direction and policy measures. They assured full support to the government in policy research and formulation and reaffirmed their commitment to continued dialogue and constructive consultation.