Finance Minister Muhammad Aurangzeb on Monday underscored the need for structural reforms in state-owned enterprises (SOEs) to reduce financial losses, stating that privatization is essential for economic stability. Speaking at the Pakistan Banking Summit 2025 in Karachi, he emphasized that SOEs are incurring losses of Rs1 trillion annually, necessitating immediate action.
Regarding discussions with the International Monetary Fund (IMF), he confirmed that a technical IMF mission is in Pakistan to discuss the Climate Resiliency Fund. The delegation will stay for three to four days, after which further deliberations will take place.Â
Separately, an IMF team is scheduled to visit in early March for the six-monthly review of Pakistan’s performance under the Extended Fund Facility (EFF), with discussions involving the Ministry of Finance, the State Bank of Pakistan, and other relevant authorities.
He reiterated the government’s commitment to sustainable and inclusive economic growth, stressing the importance of export-led expansion beyond traditional sectors like textiles, IT, and agriculture. He noted that minerals could become a significant contributor by 2028, adding that every sector must work toward increasing exports in the coming years.
When asked about cryptocurrency regulations, the finance minister noted that the matter falls under the jurisdiction of the central bank but stressed that it should be approached with an open mindset.
On taxation, Aurangzeb pointed out disparities in revenue contributions, stating that certain sectors account for nearly 20% of GDP but contribute only 1% to tax revenues, which he deemed unsustainable. The government, he said, is focusing on expanding the tax base, ensuring compliance, and addressing leakages to ease the burden on overtaxed sectors.
