Federal Minister of Finance and Revenue, Senator Muhammad Aurangzeb, on Sunday reiterated his government’s commitment to promoting export-led growth, identifying agriculture and information technology as twin sectors to drive sustainable economic growth in Pakistan.
Speaking to farmers and stakeholders in Kamalia (Toba Tek Singh), Aurangzeb emphasized that agriculture and IT are crucial to Pakistan’s economic future, saying: “We are very clear, agriculture and IT must lead this country as we move forward.”
He said that the IMF program focuses on achieving stability and explained that if agriculture and information technology face difficulties, it is because of us, so we must find a solution and strengthen these sectors for sustainable economic development.
Aurangzeb expressed concern that although many research institutions are working to develop the agriculture sector, they have not been able to achieve the desired results in enhancing crop productivity. He pointed out that a large part of the financial resources (80%) goes to salaries, leaving only 20% for research work, which he said should have been otherwise.
The minister stated that the government succeeded in achieving macroeconomic stability, which is a crucial basis for GDP growth. Building on this achievement, Pakistan’s economy is poised to transition towards sustainable growth from 2025 onwards.
He added that this claim of economic stability is not just a government assertion, but has also been confirmed by independent sources, lending credibility to the country’s economic progress.
He pointed to the government’s achievements, namely its success in ensuring macroeconomic stability, reducing inflation to single digits, and lowering interest rates. He also pointed to the increase in cement and fertilizer consumption, as well as the 58% increase in car sales, as indicators of the wise policies pursued by the government.
Aurangzeb reiterated the government’s commitment to reforms in the tax, energy and state-owned enterprises sectors. He stressed the need to improve the tax-to-GDP ratio in Pakistan, which currently stands at 9-10%, and aims to increase it to 13.5%. The Minister also announced plans to simplify the tax process, ensure digitization and reduce human intervention.
Regarding energy, Aurangzeb expressed his hope that energy tariffs will be reduced, and efforts are underway to check leakages in distribution systems by undertaking reforms with the participation of the private sector. He reiterated that the government’s role is to ensure regulations, while the private sector should drive the economy.
The minister expressed his intention to close the Pakistan Agricultural Storage and Services Company (PASCO) and create an alternative mechanism to preserve strategic reserves, which may be in the private sector. He also questioned the effectiveness of the Higher Education Commission
Referring to Sialkot as a role model for self-sufficiency and Kamali Khader as a global brand, the Minister urged stakeholders to learn from these examples to move the economy forward.
Aurangzeb assured the farmers and stakeholders of his full support in redressing their grievances, stressing the government’s commitment to serving the people of Pakistan.
He said that the government was determined to approach stakeholders at their doorsteps to benefit from their suggestions instead of just sitting in Islamabad. “If we say we are here to serve the people of Pakistan, then we have to go wherever the people are,” he said, adding that the entire budget process will be done by reaching out to stakeholders.