Federal Finance Minister Muhammad Aurangzeb stated on Monday that Pakistan’s economy is moving in the right direction, with international rating agencies acknowledging signs of stabilization.
He noted that comprehensive reforms are being rolled out in key sectors including taxation and energy.
Speaking at a press conference alongside FBR Chairman Rashid Mahmood Langrial, Energy Minister Awais Leghari, and IT Minister Shaza Fatima, Aurangzeb said the country has achieved macroeconomic stability and is now concentrating on driving sustainable growth through structural reforms. “Our direction is correct,” he affirmed, adding that the recent IMF staff-level agreement further confirms this progress.
He added that reductions in the policy rate have positively influenced the economy, and ongoing reforms in taxation, pensions, and institutional restructuring are aimed at ensuring long-term fiscal responsibility.
No need for new taxes, says FBR chief
FBR Chairman Rashid Mahmood Langrial said that effective budgetary measures have already boosted tax collections. “This year, tax-to-GDP ratio has increased by 1.5 percent for the first time,” he noted, adding that individual tax return filings have risen by 18 percent — from 4.9 million to 5.9 million filers.
Langrial stated that FBR’s target is to raise tax revenue to 18% of GDP and that current reforms require time, not new taxes. “The FBR now collects 15% of total revenue from the federation and 3% from provinces,” he added.
Govt will no longer buy electricity: Awais Leghari
Federal Energy Minister Awais Leghari announced that the government has signed a Rs 1,200 billion debt agreement to reduce circular debt, cutting it by Rs 700 billion in just one year.
He said the government has developed an effective plan to eliminate circular debt and modernize the power sector. “The government will no longer purchase electricity,” he revealed, adding that power tariffs have been reduced by up to 10.5% over the past 18 months.
Leghari said the ministry is introducing prepaid metering and automating systems to improve efficiency and save billions of rupees.
Transparency, accountability top priority: says privatization adviser
Advisor to the Prime Minister on Privatization, Muhammad Ali, said the government is ensuring full transparency in the privatization process and preventing monopolies.
He revealed that the First Women Bank was sold for Rs 5 billion — a deal criticized by some — but explained that similar small banks, such as SME Bank, had to be shut down due to financial weaknesses.
He said four groups — Fauji Foundation, Airblue, Lucky Cement, and Arif Habib Group — are participating in the PIA privatization process, while privatization of DISCOs will begin with IESCO, LESCO, and FESCO.
54,000 vacant posts abolished under right-sizing plan
Prime Minister’s Coordinator for Right-Sizing, Salman Ahmed, said that 20 ministries have already undergone restructuring, resulting in the elimination of 54,000 vacant positions. He added that the loss-making Pakistan Agricultural Storage and Services Corporation (PASSCO) will also be shut down to reduce fiscal burden.
Salman Ahmed noted that cabinet approval is required for all right-sizing decisions, and the process is being carried out in consultation with relevant ministries.
Source: Dunya News