Islamabad: Minister for Finance and Revenue Senator Muhammad Aurangzeb while highlighting the government's reform agenda as laid out in the recent Federal Budget, has reaffirmed the government's commitment to macroeconomic reforms.
Senator Muhammad Aurangzeb was speaking at a ceremony titled "National Workshop on Transitioning to Defined Contribution Pension Schemes" organized by the Securities and Exchange Commission of Pakistan in Islamabad on Tuesday.
The Minister began by briefing the participants on the recent geopolitical tensions and regional developments, sharing insights from a high-level meeting he chaired yesterday to review the evolving situation and its potential economic implications for Pakistan.
He noted that in-depth discussions were held with key stakeholders on scenario, ensuring adequate stockpiles of petroleum products, and monitoring asset class pricing.
He emphasized the government's firm resolve and preparedness to handle any eventuality, saying that we are in a good place, but hope is not a strategy. He said the government has to plan for every possible outcome.
Touching upon international economic developments, Senator Muhammad Aurangzeb shared details of his constructive and positive conversation with the US Commerce Secretary held late last night.
He described the ongoing discussions on US tariffs as encouraging and noted that both countries are making steady progress and the broader objective is to deepen bilateral relations into a strategic economic partnership.
He emphasized that the government would continue to push forward on key areas such as privatization, tax reform, state-owned enterprise (SOE) restructuring, federal government rightsizing, pension, and public finance reform.
Speaking on the subject of pension reforms, Senator Muhammad Aurangzeb explained the rationale behind the government's decision to transition new civil servants to a Defined Contribution pension scheme, effective 1st July last year.
He underscored that this shift was a critical step taken even before addressing the legacy issue of unfunded pension liabilities. The Minister said we had to stop the bleeding, while referencing the fiscal burden of pension payments which have now exceeded one trillion rupees, surpassing the federal government's entire development budget.
He said this raises a fundamental question of macroeconomic sustainability, stressing the urgency of reform.
Senator Muhammad Aurangzeb also commended provincial governments for their proactive role, particularly in the area of public-private partnerships and for taking the lead on defined contribution initiatives.
The Finance Minister expressed confidence in the collective ability of stakeholders to bring about meaningful change in Pakistan's pension landscape, driven by sustainability, transparency, and long-term fiscal responsibility.