'Remittances may hit all-time high of $36b this year'

Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday provided a comprehensive update on the country's economic progress, highlighting increased remittance inflows, growing investor confidence, and improved outcomes from institutional reforms.

"The record-breaking remittance inflow for February 2025 reached an impressive $3.1 billion. We estimate an all-time high remittance inflow of $36 billion by the end of the fiscal year," he said at a news conference alongside Minister for Information, Broadcasting, National Heritage, and Culture Attaullah Tarar.

Expressing gratitude to the Pakistani diaspora, whom he described as "the lifeline of our country," Aurangzeb acknowledged their invaluable contribution to the economy.

"On behalf of the prime minister, the government, and the cabinet, we extend our heartfelt thanks to all our Pakistani brethren and sisters working abroad and sending remittances back home," he said.

The finance minister also cited several independent surveys conducted in the past quarter, including those by Gallup, ICC, Overseas Shapers, Ipsos, PricewaterhouseCoopers, and the State Bank of Pakistan (SBP), all of which showed a noticeable uptick in business and consumer confidence. "This confidence is reflected in increased business activity, and it is promising to see these positive trends taking root across various sectors," he noted. Despite daily fluctuations in the stock market index, Aurangzeb expressed optimism about the market's overall direction. He pointed out that 52,000 new investors had entered the market in recent months, signalling growing interest in Pakistan's financial sector.

Furthermore, he highlighted a major milestone in the capital markets, with seven initial public offerings (IPOs) taking place on the stock exchange in the past year—the highest number in recent years, significantly surpassing the previous average of four IPOs annually over the past decade.

"These are very encouraging signs of progress, both in terms of economic recovery and in fostering a more vibrant, investor-friendly market environment," he said.

Discussing ongoing reforms in the sugar industry, Aurangzeb noted that as the 2024-2025 sugarcane crushing season began, the Federal Board of Revenue (FBR) had implemented an enhanced production monitoring system for sugar mills. This system includes five oversight mechanisms, such as track-and-trace stamps, automated counters, and video recording to increase transparency.

To further ensure accountability, FBR personnel were deployed at sugar mills across the country, supported by officers from the Federal Investigation Agency (FIA) and the Intelligence Bureau.

"The result is that sugar is now being sold to genuine distributors, significantly reducing profiteering and corruption within the supply chain," Aurangzeb explained.

The finance minister highlighted the positive impact of these reforms on government revenue, noting that sales tax on sugar in the first two months of 2025 had risen sharply compared to the same period in 2024, reaching Rs24 billion, up from Rs15 billion—a 54% increase.

For the first time, he added, sugar was not smuggled but legally exported to Afghanistan. "This is a very beneficial result. We need every single dollar to balance our current account," he said.

He concluded by expressing confidence that with 5.7 million tonnes of sugar available, along with stock from the previous season, the country would have sufficient supply through better management.