ISLAMABAD: Finance Minister Muhammad Aurangzeb announced on Sunday that Prime Minister Shehbaz Sharif will soon unveil a new economic roadmap, emphasizing that the government would not impose new taxes to address any revenue shortfall.
Speaking at a press conference in Islamabad, Aurangzeb highlighted positive trends in key economic indicators, including increasing foreign exchange reserves, a reduction in inflation from 38% to 7%, and a decline in policy rates. He noted that international financial institutions were increasingly confident in Pakistan’s economic recovery, with the IMF expressing surprise at the speed with which the economy had turned around in just 14 months.
“The economy is moving in the right direction thanks to government initiatives,” said Aurangzeb. “Stability is returning, foreign exchange reserves are growing, and inflation has been significantly reduced.” He also pointed to the government’s success in improving fiscal balance, noting that the deficit had been transformed into a surplus within a year.
Aurangzeb’s comments followed the government’s recent discussions with the IMF on Pakistan’s $7 billion bailout reform agenda during an unscheduled visit by the IMF mission to Islamabad. The mission, which arrived within six weeks of the IMF’s approval of the loan, was reportedly encouraged by Pakistan’s commitment to implementing necessary reforms under the Extended Fund Facility (EFF). However, the IMF did express concerns over some gaps in revenue collection and external financing.
In response to concerns that Pakistan might need to introduce new taxes to bridge the fiscal gap, Aurangzeb firmly stated that the government would focus on improving tax compliance and enforcement rather than imposing new taxes. “We are committed to ensuring better compliance,” he said. “All sectors must contribute to the economy.”
The Finance Minister further reiterated that significant reforms were underway in key sectors, including taxation, energy, and the privatization of loss-making state-owned enterprises (SOEs). He also emphasized that the government’s focus on expanding the tax net would play a crucial role in meeting revenue targets.
“Under the leadership of Prime Minister Shehbaz Sharif, we are taking concrete steps to improve the economy, and the Prime Minister will soon present a detailed economic roadmap,” Aurangzeb stated.
On the issue of climate change, which the minister described as a major challenge, he stressed the need for collective efforts to mitigate its negative effects. “We must all work together to tackle climate change,” he added.
