The Federal Minister of Finance, Muhammad Aurengzeb, pledged on Wednesday to close the tax lagoons, improve investor confidence and maintain economic reforms, since he addressed the Rawalpindi Chamber of Commerce and the Industry Independence Day event.
Aurengzeb said international institutions had welcomed Pakistan’s reform measures, while recent Gallup surveys showed growing economic confidence.
It observed a 60% growth in the stock exchange, an increase in new investors and 250,000 records of new companies.
Aurengzeb suggested that the key policy rate could be reduced more this year, citing falls on average and central inflation.
In early May, Governor SBP, at a press conference along with other members of the Monetary Policy Committee (MPC), announced a 100 BPS cut, highlighting an improved inflation perspective and moderate economic recovery signs.
By exceeding the market expectations of a 0-50 PB cut, the Central Bank reduced the policy rate at 100BP to 11% in a meeting, “Topine Securities wrote.” We hope that interest rates will fall to 10% in December 2025. “
Read: 11% reduced policy rate
The minister said the government had ended the economic agreements focused on growth with the IMF, reached a favorable rate agreement with the United States and was working in key agreements with China.
Panda bonds would be issued at the end of the year, and a reference point for Sukuk bonds, the financial tsar.
Aurengzeb also highlighted the continuous right of 45 ministries, the accelerated privatization of state companies and reductions in electric rates, with more expected energy cost improvements.
He assured that the tax reforms would not carry the salaried class and that the prime minister personally supervised the transformation of FBR. Monthly meetings with cameras would be held to address commercial concerns.
Read more: PM approves the creation of the digital ecosystem in FBR
Requesting the unit, Aurengzeb said that the private sector must lead economic growth, with the government’s role to provide a favorable commercial climate.
