Islamabad: Finance Minister Muhammad Aurangzeb announced that structural reforms in Pakistan’s multiple sectors are leading to macroeconomic stability and sustainable economic growth. Speaking at a news conference in Islamabad alongside the economic team, the Finance Minister emphasized that global financial institutions and rating agencies have recognized this progress.
According to Radio Pakistan, the Finance Minister highlighted recent upgrades by three major credit rating agencies and a staff-level agreement with the IMF as evidence of this acknowledgment. He underscored that these external endorsements confirm that Pakistan is on the right track. Additionally, he noted reductions in inflation and policy rates, as well as stability in foreign exchange reserves.
Minister for Power Sardar Awais Ahmad Khan Leghari provided updates on reforms in the Power Division, stating that electricity prices have decreased by ten rupees and fifty paisas over the last eighteen months. For industrial units, the reduction has been sixteen rupees per unit. He also announced plans to operationalize the Competitive Trading Bilateral Contract Market (CTBCM) early next year, describing it as a significant reform aimed at facilitating the electricity trading market.
Sardar Awais Leghari mentioned that the government has reduced circular debt and plans to clear 1.2 trillion rupees in circular debt over the next six years without burdening consumers.
Minister for Information Technology and Telecommunications, Shaza Fatima Khawaja, discussed the transformation of the tax collection system through digital banking and payment tools. She reported ongoing digitization of government departments to expand the tax net, with four-hundred and fifty million utility bills printed with QR codes for easier digital payments. Additionally, she highlighted the opening of ten million digital accounts for women beneficiaries of the Benazir Income Support Programme.
Adviser on Privatization Muhammad Ali detailed progress in privatizing state-owned enterprises, highlighting the privatization of First Women Bank and plans to privatize PIA by year-end, noting interest from several top Pakistani groups.
Chairman FBR Rashid Mahmood Langrial reported a 1.49 percent increase in the tax-to-GDP ratio over the past year, marking a significant achievement through policy measures. He set a target to enhance the tax-to-GDP ratio to eighteen percent within three to four years, with contributions from the federation and provinces. An eighteen percent increase in the number of tax filers compared to the previous year was also noted.