Policy rate will drop in next FY to single digit: FinMin

ISLAMABAD: Finance Minister Muhammad Aurangzeb has 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.

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

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

Federal 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.

He said the PIA’s image is improving, which will be beneficial in its privatization.

Speaking at ARY News’ talk show “Khabar”, the minister stated that while revenue could potentially be increased through a carbon levy, the petroleum levy has not yet been considered. He emphasized the need to prioritize taxation and environmental concerns.

“We need to take steps to enhance revenue collection,” he said, adding that last year the government also highlighted enforcement as a means of boosting revenue.

Muhammad Aurangzeb asserted that the figures presented in the Economic Survey are accurate. He questioned why tariff reforms, which should have been implemented earlier, were delayed.