The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Federal Finance Minister Muhammad Aurangzeb articulated the government’s economic agenda for the fiscal year 2024-25. He underscored the critical importance of enhancing the tax-to-GDP ratio, expediting the privatization of state-owned enterprises (SOEs), and revamping the energy sector as top priorities for achieving sustainable economic growth.
Minister Aurangzeb emphasized the recent macroeconomic stability and urged for a concerted effort towards sustainable growth. He stressed the pivotal role of the private sector in leading the economy through challenging times and urged its active participation.
Highlighting the government’s role in policy formulation, Minister Aurangzeb emphasized the need for real productivity from the private sector. He emphasized consultations with provinces for fostering growth and development across the nation.
The minister pinpointed structural reforms as imperative to address the current account and budget deficits. He reiterated the government’s commitment to bringing both the salaried segment and the business community into the tax net to bolster the tax-to-GDP ratio, which currently stands at a dismal 9 percent.
Regarding tax reforms, Minister Aurangzeb acknowledged the need for a robust track and trace system to curb leakages and broaden the tax net. He announced a collaboration with global consulting firm McKinsey and Company to digitize the tax system, enhancing transparency and revenue growth.
On the issue of privatisation, Minister Aurangzeb stressed its necessity for economic stability. He highlighted the resurgence in foreign investor confidence, evidenced by the country’s foreign currency reserves surpassing the US $9 billion mark.
Touching upon Pakistan’s engagement with the International Monetary Fund (IMF), Minister Aurangzeb revealed ongoing discussions for a new loan programme, underscoring the nation’s commitment to structural reforms.
In conclusion, Minister Aurangzeb reaffirmed the government’s determination to tackle challenges, promote economic growth, and bridge trust deficits through a balanced approach.
Throughout the conference, Minister Aurangzeb addressed various concerns, including the exchange rate, interest rates, energy sector reforms, promotion of women’s entrepreneurship, and facilitation of Foreign Direct Investment (FDI) from key partners such as Saudi Arabia, China, and the EU. He assured continued consultation with stakeholders to address issues facing SMEs and strengthen sectors like agriculture and Information Technology (IT).
