Finance Minister vows to implement tax reforms, eyes private-sector led growth

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, reaffirmed the government’s resolve to implement comprehensive tax reforms, separating tax policy from tax administration to restore credibility and consistency for investors.

In his key note address at the Pakistan Business Summit held at the Serena Hotel, Peshawar, federal minister said that the government’s priority was to ensure macroeconomic stability, and provide the right ecosystem for business and investment.

The summit, organized under the patronage of the Governor of Khyber Pakhtunkhwa, carried the theme “Shaping What’s Next” and brought together policymakers, business leaders, and corporate executives to deliberate on Pakistan’s economy, innovation, and global competitiveness.

The one-day event was co-hosted by Nutshell Group and Al Baraka Bank (Pakistan) Limited, with the Overseas Investors Chamber of Commerce and Industry (OICCI) as Strategic Partner.

In his remarks, the finance minister commended the organizers for convening a high-profile forum in Peshawar and underlined the government’s commitment to creating an enabling environment for the private sector to lead Pakistan’s economic growth.

Reviewing recent economic progress, Senator Aurangzeb highlighted a sharp decline in financing costs following reductions in the policy rate, improved foreign exchange reserves covering close to three months of imports, and stability in the exchange rate.

He noted that these developments have strengthened investor confidence and facilitated repatriation of dividends and profits.

Remittances reached $38bn last year and are expected to rise to $41 to $43bn in the current fiscal year, the minister said. He also noted that Pakistan had repaid $500m in Eurobond obligations in September without market disruption and was preparing for a $1.3bn repayment due in April 2026.

He underlined ongoing reforms in state-owned enterprises, privatization efforts, and energy pricing as critical components of the economic reform agenda.

The finance minister also discussed Pakistan’s export-led growth strategy, tariff reforms aimed at reducing duties on raw materials and intermediate goods, and measures to attract efficient foreign direct investment (FDI).

He cited recent engagements in Beijing, Riyadh, Washington, and New York as evidence of renewed investor confidence, including the signing of 24 joint venture agreements with Chinese companies.

He further announced plans for Pakistan’s inaugural Panda Bond issuance before the year’s end, opening access to China’s deep capital markets.

Senator Aurangzeb underscored that Pakistan’s path to sustainable growth rests on greater competitiveness, private sector dynamism, and closer coordination between the federation and provinces.

He also stressed the need to prioritize effective utilization of the Rs. 4.3 trillion national development budgets for infrastructure, health, and education.

Highlighting long-term challenges, the finance minister identified climate change and population growth as existential issues for Pakistan. He emphasized the urgency of addressing child stunting, learning poverty, and climate resilience alongside economic recovery, noting that these factors directly affect Pakistan’s future productivity and leadership.

The minister concluded by saying the government was determined to deliver sustainable growth and ensure reforms translated into tangible benefits for citizens.