Pakistan emerged from Balance of Payments crisis: FinMin

ISLAMABAD: Finance Minister Senator Muhammad Aurangzeb on Wednesday said that Pakistan has successfully come out of its balance of payments crisis, ARY News reported.

The finance minister passed these remarks in the National Assembly’s Standing Committee on Finance, chaired by Pakistan People’s Party MNA Syed Naveed Qamar.

Muhammad Aurnagzaib said that the milestone has enabled the government to reduce duties on raw materials. The finance minister added that the Tariff Policy Board will now continuously review tariffs on raw materials.

He said that the resolution of the balance of payments crisis has made it feasible to lower these duties, with expectations that exports could rise by up to 14 percent as a result.

Muhammad Aurangzeb said that imports might increase by up to 6 percent due to the reduced tariffs.

The finance minister recalled that plans to reduce taxes and tariffs on raw materials were initially set for 2019 but were delayed.

Muhammad Aurangzeb explained that the increase in tariffs in 2020 was a response to the COVID-19 pandemic, followed by further hikes in 2022 due to the balance of payments crisis.

Earlier, in an interview to ARY News finance minister highlighted the proposed government steps for the next financial year 2025–26.

He said that the policy rate will come down to single digit in the next financial year. The business circles are demanding drop in the central bank’s interest rate to single digit. President FPCCI Atif Akram has demanded bringing the policy rate to seven percent.

He said various taxes have been slashed in the budget. “Which tax when increased in the past brought down,” he asked.

The finance minister said that privatization of Pakistan International Airlines (PIA) and the Roosevelt Hotel is scheduled for the next fiscal year, and privatization efforts for three power distribution companies (DISCOs) will continue.