Pakistan’s Finance Minister stresses need for structural reforms

Finance Minister Muhammad Aurangzeb emphasized the necessity of structural reforms to ensure sustainable and inclusive economic growth, steering the country away from boom-bust cycles.

Speaking at a Pakistan Retail Business Council event in Islamabad on Thursday, Aurangzeb highlighted the ongoing fundamental changes in key sectors such as public finance, energy, taxation, and State-Owned Enterprises (SOEs). He expressed optimism over the nation’s macroeconomic stability, stating that Pakistan is on the right economic trajectory.

Tax reforms and transparency

The Finance Minister underscored a major transformation in the taxation sector, with the adoption of the latest technologies aimed at increasing transparency and preventing financial leakages. He also stressed the importance of rebuilding public confidence in the tax administration.

Aurangzeb called on industries including retail, wholesale, real estate, and agriculture to contribute their fair share of taxes, noting that the excessive tax burden on the salaried class is unsustainable.

Energy sector and SOE reforms

To transition towards a competitive energy sector, the minister stated that stringent regulations are being implemented. He further mentioned that the rightsizing of State-Owned Enterprises (SOEs) has already begun and is expected to be completed by June 2025.

Additionally, Aurangzeb confirmed that the privatization process will continue as planned, reinforcing the government’s commitment to economic efficiency and stability.