WASHINGTON DC, April 24: Finance Minister Muhammad Aurangzeb has said that Pakistan is beginning to see signs of economic stability but warned against complacency, urging sustained reform momentum and avoidance of past policy missteps, Express News reported Wednesday.
Speaking at the Atlantic Council’s GeoEconomics Center during the IMF-World Bank Spring Meetings in Washington, Aurangzeb shared Pakistan’s recent progress, including a rise in foreign exchange reserves, improved inflation trends, a narrowing fiscal deficit, and an upgraded credit outlook.
Using a cricketing metaphor, he said Pakistan has “put some runs on the scoreboard,” but emphasized the need for consistent performance to solidify gains.
He highlighted a 29% increase in tax revenues and projected the tax-to-GDP ratio to reach 10.6% by the end of FY25. Aurangzeb also pointed to improved debt management and cost-saving measures that have created fiscal space for development spending.
In a key policy development, the finance minister noted the inclusion of agricultural income in the tax net for the first time—calling it a “noteworthy step”—and stressed the need for coordinated fiscal planning through the National Finance Commission.
He discussed Pakistan’s drive to expand the formal economy, acknowledging the high volume of cash in circulation. New enforcement tools such as digital audits, faceless customs, and track-and-trace systems are being deployed to increase compliance and transparency.
Aurangzeb also addressed social and environmental challenges, including population growth, climate change, and education gaps. He announced Pakistan’s work on a Green Taxonomy Framework to facilitate sustainability-focused financing, including the issuance of green bonds and sukuks.
He welcomed increased engagement with multilateral lenders such as the IMF, World Bank, and Asian Development Bank, who have backed Pakistan through new financing arrangements.
Concluding his remarks, the finance minister called for reforms in global financial governance and proposed a new platform to better manage concessional finance for developing economies.
