Finance Minister Muhammad Aurangzeb acknowledged the many economic challenges facing the country and said there is no “magic wand” to solve the problems overnight.
However, he assured that the government’s efforts are paying off, with inflation reduced to around 5% and interest rates expected to reach single digits in the near future.
Addressing a press conference in Kamalia, Punjab, Aurangzeb said, “The country’s problems are immense and there is no instant solution. However, we are committed to ensuring economic stability. “Currently high interest rates are being reduced to a more business-friendly level, which will have a positive impact on the economy.”
He stressed that further reducing interest rates from 23-24% to 8-9% would significantly ease the burden on businesses and encourage growth.
Aurangzeb criticized the outdated budgeting process and commented: “Our system is flawed. People come to Islamabad for two or three months and some of their concerns are addressed while others are ignored.
During this time, the country practically came to a standstill. We plan to change this by engaging directly with the business community and encouraging them to focus on their operations.”
Aurangzeb outlined the government’s vision for sustainable economic growth by 2025, highlighting the challenges of being an import-dependent economy. “The increase in imports depletes dollar reserves, generates problems in the balance of payments and forces us to repeatedly depend on the IMF. “We are working to transition to a growth model driven by exports,” he explained.
Aurangzeb highlighted the need to increase the tax-to-GDP ratio, which currently stands between 9% and 10%. “Countries are not governed by charity but by taxes. “Reforms are being carried out to broaden the tax base and bring more sectors under the tax net,” he stated.
He noted that the salaried class has borne a disproportionate burden due to inefficiencies in the tax system. “The salaried class cannot bear any additional tax increases. We are bringing other sectors into the tax net to ensure fair distribution of the tax burden. “Everyone will have to contribute,” he stated.
Aurangzeb urged political and economic players to come together for the progress of the nation. “For the good of the country and the economy, we must unite under an economic charter. If the country prospers, we all prosper,” he concluded.
The minister reiterated the government’s commitment to addressing structural problems and achieving long-term economic stability, calling for patience and collaboration.
