Finance Minister Muhammad Aurangzeb has projected that Pakistan’s tax-to-GDP ratio will reach 10.6% by the end of the current fiscal year, a step toward the government’s medium-term target of 13% under the ongoing 37-month Extended Fund Facility (EFF) with the International Monetary Fund (IMF).
Speaking during a session with S&P Global Ratings as part of Pakistan’s sovereign ratings review, Aurangzeb outlined the government’s macroeconomic roadmap and reaffirmed its commitment to sustainable and inclusive growth. The Finance Division later issued an official statement summarising the discussion.
He emphasized ongoing structural reforms across key areas including taxation, energy, state-owned enterprises (SOEs), privatisation, public financial management, and debt strategy. A major shift, he noted, is the separation of the Tax Policy Office from the Federal Board of Revenue (FBR), aiming to reorient tax policymaking toward long-term economic value rather than administrative convenience.
Aurangzeb also said that inflation and the current account deficit (CAD) have remained stable over the course of the year, reinforcing macroeconomic stability. He pointed to surpluses in both the primary balance and current account as encouraging signs of improving fundamentals.
On the external side, the finance minister stated that foreign exchange reserves are expected to rise to $13 billion by the end of June, supported by institutional inflows, stronger remittances, easing oil import prices, and growing trade receipts.
He also shared takeaways from his recent trip to Washington for the World Bank/IMF Spring Meetings, where international partners reaffirmed their support for Pakistan’s structural reform agenda and urged the government to maintain reform momentum to ensure long-term stability.
