Islamabad: Minister for Finance, Senator Muhammad Aurangzeb, while highlighting the government’s reform agenda as laid out in the recent Federal Budget, has reaffirmed the government’s commitment to macroeconomic reforms. He was speaking at a ceremony titled “National Workshop on Transitioning to Defined Contribution Pension Schemes” organized by the Securities and Exchange Commission of Pakistan in Islamabad.
According to Radio Pakistan, the Minister began by briefing the participants on the recent geopolitical tensions and regional developments, sharing insights from a high-level meeting he chaired to review the evolving situation and its potential economic implications for Pakistan. He noted that in-depth discussions were held with key stakeholders on scenario, ensuring adequate stockpiles of petroleum products, and monitoring asset class pricing.
He emphasized the government’s firm resolve and preparedness to handle any eventuality, stating that planning for every possible outcome is essential. Touching upon international economic developments, Senator Aurangzeb shared details of his discussions with the US Commerce Secretary on US tariffs, noting that both countries are making steady progress towards deepening bilateral relations into a strategic economic partnership.
He further emphasized the government’s focus on key areas such as privatization, tax reform, state-owned enterprise restructuring, federal government rightsizing, pension, and public finance reform. Speaking on pension reforms, Senator Aurangzeb explained the rationale behind transitioning new civil servants to a Defined Contribution pension scheme, effective 1st July last year, as a crucial step before addressing unfunded pension liabilities.
The Minister highlighted the fiscal burden of pension payments, which have exceeded one trillion rupees, raising concerns about macroeconomic sustainability and stressing the urgency of reform. Muhammad Aurangzeb also commended provincial governments for their role in public-private partnerships and defined contribution initiatives, expressing confidence in stakeholders’ ability to drive meaningful change in Pakistan’s pension landscape.