A high-level delegation from Jefferies Investors, led by Alia Moubayed, met with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, in Islamabad on Thursday to discuss Pakistan's economic outlook, investment climate, and ongoing reforms.
The delegation invited the finance minister to the Pakistani Investors Day in London, scheduled for May 2025, as part of efforts to strengthen engagement with global investors.
Aurangzeb highlighted Pakistan's economic stabilisation and the government's commitment to structural reforms in taxation, energy, state-owned enterprises (SOEs), and privatisation. He highlighted the country's stable macroeconomic position and outlined measures for fiscal discipline, revenue mobilisation, and investment facilitation.
Key tax reforms were discussed, including the activation of the National Tax Council to enhance federal-provincial coordination and the expansion of the tax base by formally including the wholesale, retail, and real estate sectors. The minister also noted that all four provinces had approved the agricultural income tax bill, set to take effect on July 1, 2025. Additionally, he confirmed the shift of tax policy from the Federal Board of Revenue (FBR) to the Finance Division for a more strategic approach.
The discussion also covered fiscal consolidation, rightsizing expenditures, and export-led growth, with the minister emphasising a structural shift in Pakistan's economic model. He provided updates on capital market developments, including ongoing Panda Bond discussions as part of Pakistan's external financing strategy. He reiterated the need for tactical support in capacity building, particularly in addressing population growth and climate change, which he termed as critical long-term challenges for Pakistan.
The delegation acknowledged Pakistan's economic progress and expressed interest in investment opportunities in capital markets, infrastructure, and emerging sectors. They appreciated the government's reform agenda and efforts to enhance investor confidence.
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