Finance Minister Muhammad Aurangzeb on Saturday urged the business community to share ideas and proposals to help address Pakistan’s trade imbalance with the United States, calling for collaborative efforts to manage the impact of tariffs imposed during the Trump administration.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI), the minister noted that while some relief in US tariffs is available for 90 days, the 10 per cent base tariff remains enforced, and the broader issue of trade imbalance needs immediate attention. He said the The government will soon send a high-powered delegation, including business members, to the US for talks with American authorities.
Highlighting the importance of the US as Pakistan’s largest trading partner, he stressed the need to increase both exports and imports to address the imbalance and encouraged businesses to suggest potential products and sectors for trade enhancement.
Aurangzeb also updated the audience on the government’s privatization efforts, stating that 24 state-owned enterprises (SOEs) have been transferred to the privatization commission. He added that a committee led by him is examining rightsizing across ministries and their over 400 attached departments, which he said are draining public finances through inefficiency and corruption.
He criticized the performance of these departments, questioning their effectiveness over the past five decades.
Focusing on economic opportunities, the finance minister said the IT and minerals sectors have the potential to transform Pakistan’s economy. He pointed to the success of nickel exports in Singapore, which contribute $22 billion annually, and said Pakistan’s copper reserves could yield similar benefits.
He emphasized that the government is actively working to remove barriers to local and foreign investment in these sectors and that the recent mineral conference generated significant global interest.
Aurangzeb assured that steps have been taken to resolve foreign investors’ concerns over profit repatriation, leading to improved investor confidence. He said the government is determined to ensure that lower inflation benefits the general public and that measures are being put in place to prevent middlemen from manipulating the system.
Addressing taxation issues, the minister admitted that the salaried class disproportionately bears the tax burden. He pledged relief for salaried individuals and stated that raising the tax-to-GDP ratio to 13 per cent would allow the government to offer wider tax relief across various sectors.
LCCI President Mian Abuzar Shad praised the government’s efforts to control inflation and lower the policy rate but urged timely disbursement of tax refunds to exporters to support liquidity and sustain economic momentum. He pointed out that despite the FASTER system’s 72-hour processing promise, refunds often take up to a month, and proposed that exporters be paid markup if refunds are delayed beyond 15 days.
