Structural reforms under sharper focus, Aurangzeb tells Dialog delegation

ISLAMABAD: Federal Minister for Finance and Revenue, Muhammad Aurangzeb, on Tuesday stressed the government’s focus on structural reforms, including taxation, energy sector restructuring, and privatisation of state-owned enterprises, governance reforms, and federal expenditure rationalisation.

The minister also highlighted Pakistan’s economic reform momentum in meeting with a high-level delegation representing ‘Dialog’, a global leadership platform founded by Peter Thiel and Auren Hoffman.

The delegation was led by Ambassador Ali Jehangir Siddiqui and included prominent global figures such as Simon Stevens (Member, UK House of Lords), Veit Valentin Dengler (Member of Parliament, Austria and Founder Draw Solutions), Yasmin Green (CEO, Jigsaw Google), Fatima Kardar (VP, Xbox-Microsoft), Shadi Martini (CEO, Multi Faith Alliance), Evan Marwell (CEO, Education Superhighway), and Himanshu Gulati (Member of Parliament, Norway) amongst others.

Government’s economic team unveils progress report on structural reforms, way forward

The Finance Minister expressed appreciation for Dialog’s continued engagement with Pakistan since the inaugural Dialog Pakistan-Winter 2024, which has helped broaden international understanding of Pakistan’s economic landscape and investment potential. Ambassador Siddiqui introduced the delegation, following which the Finance Minister delivered a comprehensive briefing.

The Minister outlined Pakistan’s macroeconomic consolidation over the past 18 months, noting recent upgrades by Fitch, S&P, and Moody’s affiliates, as well as, the successful Second Review of Pakistan’s IMF Extended Fund Facility and the Climate Resilience Program. He highlighted improving geopolitical alignment, a strengthened relationship with the United States, China, and Saudi Arabia, and the launch of CPEC Phase 2.0 focused on business-to-business investment, export-oriented industrial zones, and establishing joint ventures.

The Finance Minister stressed the government’s focus on structural reforms, including taxation, energy sector restructuring, and privatization of state-owned enterprises, governance reforms, and federal expenditure rationalization. He underscored efforts to broaden and deepen the tax base, integrate technology and AI-based monitoring, enhance compliance, and bring under-taxed sectors such as real estate, agriculture, and wholesale/retail into the net.

The Minister also explained Pakistan’s progress on pension reforms, transition to contributory schemes for new entrants, and upcoming measures to address long-term fiscal liabilities.

On energy reforms, the Minister discussed governance improvements in distribution companies, loss-reduction efforts, private-sector representation on boards, and a renewed privatization pipeline. He reaffirmed the government’s commitment to a competitive tariff regime, the sustainability of the power sector, and greater private-sector participation.

During the interactive question-and-answer session, the Minister responded to queries on Pakistan’s tariff discussions with the United States, debt trajectory, banking regulation, and the link between infrastructure investments under CPEC and long-term growth. He emphasised the government’s intention to re-enter international capital markets next year, including potential issuance of Panda bonds and steps to deepen domestic financial markets.

The Finance Minister noted that Pakistan’s demographic advantage, coupled with ongoing reforms in mining, agriculture, IT, AI, digital infrastructure, pharmaceuticals, and manufacturing, positions the country for sustained, private-sector-led growth. He welcomed continued engagement with Dialog’s global leadership network as an opportunity to strengthen international partnerships, attract foreign investment, and project Pakistan’s reform agenda to influential global stakeholders.

Copyright Business Recorder, 2025