IslamabadFinance Minister Muhammad Aurangzeb announced on Sunday that Prime Minister Shehbaz Sharif will soon unveil a new economic roadmap, stressing that the government will not impose new taxes to address any revenue shortfall.
Speaking at a press conference in Islamabad, Aurangzeb highlighted positive trends in key economic indicators, including an increase in foreign exchange reserves, a decline in inflation from 38% to 7%, and lower interest rates. He noted that international financial institutions are increasingly confident in Pakistan’s economic recovery, with the International Monetary Fund expressing astonishment at the speed with which the economy has turned around in just 14 months.
“The economy is moving in the right direction thanks to government initiatives,” Aurangzeb said. “Stability has returned, foreign exchange reserves are growing, and inflation has fallen significantly.” He pointed to the government’s success in improving the financial balance, noting that the deficit turned into a surplus within a year.
Aurangzeb’s comments came in the wake of the government’s recent discussions with the International Monetary Fund on the reform agenda of Pakistan’s $7 billion bailout during an unscheduled visit of the IMF mission to Islamabad. The mission, which arrived within six weeks of the IMF’s approval of the loan, was reportedly encouraged by Pakistan’s commitment to implementing necessary reforms under the Extended Fund Facility (EFF). However, the IMF has expressed concerns about some gaps in revenue collection and external financing.
In response to concerns that Pakistan may need to impose new taxes to plug the fiscal gap, Aurangzeb firmly stated that the government would focus on improving tax compliance and enforcement rather than imposing new taxes. “We are committed to ensuring better compliance,” he added. “All sectors must contribute to the economy.”
The Finance Minister also stressed that major reforms are underway in key sectors, including taxation, energy and the privatization of loss-making state-owned enterprises. He also stressed that the government’s focus on expanding the tax net will play a crucial role in achieving revenue targets.
“Under the leadership of Prime Minister Shehbaz Sharif, we are taking concrete steps to improve the economy, and the Prime Minister will soon present a detailed economic roadmap,” Aurangzeb said.
Regarding the issue of climate change, which the minister described as a major challenge, he stressed the need for concerted efforts to mitigate its negative effects. He added: “We must all work together to address climate change.”