Islamabad: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said the government is pushing ahead with a wide-ranging and irreversible reform agenda aimed at strengthening economic stability, improving competitiveness, and restoring fiscal balance.
Speaking at the Pakistan Business Council's Dialogue on the Pakistan Economy in Islamabad, the Finance Minister outlined ongoing reforms in taxation, digital transformation, state-owned enterprise restructuring, and debt management as part of a coordinated effort to place Pakistan on a sustainable economic path.
Senator Aurangzeb noted that macroeconomic stability has improved and early signs of economic recovery are visible. Positive trends have been observed in sectors including cement, fertilizer, automobiles, mobile phone manufacturing, and large-scale industry. He also highlighted a recent OICCI survey showing increased investor confidence and rising interest from global companies across energy, mining, technology, logistics, and automotive sectors.
The Minister said the government is now focused on operationalising reforms, particularly through the broad transformation of Pakistan's taxation system via digitalisation of people, processes, and technology. Tax policy functions have been shifted from the FBR to the Ministry of Finance, where a fully operational Tax Policy Office and an Advisory Council are being established. Year-round engagement with chambers and sectoral bodies will replace previous once-a-year budget consultations.
On state-owned enterprise and government restructuring, Senator Aurangzeb reported that half of all federal ministries and attached departments have been reviewed, 54,000 vacant posts abolished (saving Rs. 56 billion annually), and several ministries and organisations merged or closed.
He emphasised Digital Pakistan, personally monitored by the Prime Minister, which focuses on digital payments, public infrastructure, and government digitisation to transition from a cash-based to a documented economy.
Debt management has improved through modernisation of the Debt Management Office, extending Pakistan's average debt maturity to four years and lowering refinancing risks. A new contributory pension scheme, operational since July 2024, has enrolled over 9,000 government employees to curb fiscal pressure.
Looking ahead, the Minister announced the inaugural session of the 11th NFC Award on 4 December and progress on Pakistan's planned Panda Bond issuance before the Chinese New Year. Regulatory frameworks for digital and crypto economies are being implemented via the Pakistan Virtual Asset Regulatory Authority.
Senator Aurangzeb projected around 3.5% growth this year, 4% over the next 2-3 years, with medium-term potential of 6-7%, provided momentum in agriculture, manufacturing, and services continues. He highlighted stabilised remittance inflows, strong Roshan Digital Account performance, and improved institutional flows under SCRA.
Addressing industry concerns on taxation, energy costs, and financing, he encouraged corporates to diversify funding through capital markets and assured continued monitoring of tariff adjustments. He reaffirmed that national security, macroeconomic stability, and profit repatriation are essential for attracting global investment.
The Finance Minister concluded by reiterating the government's commitment to evidence-based policymaking, private-sector partnership, and irreversible reforms to secure Pakistan's sustainable economic growth.