Finance Minister Muhammad Aurangzeb has said the country is seeing signs of economic stability, while emphasising the need to stay the course and avoiding a repeat of mistakes from the past, Express News reported on Wednesday.
Speaking at the Atlantic Council’s GeoEconomics Center on the sidelines of the IMF-World Bank Spring Meetings in Washington, Aurangzeb discussed Pakistan’s economic outlook, ongoing reforms, and the importance of continued collaboration with international financial institutions.
Drawing an analogy from cricket, he said Pakistan has "put some runs on the scoreboard" but noted that consistent performance and prudent decision-making remain crucial.
He pointed to an increase in foreign reserves, improved inflation trends, a better credit outlook, and a reduction in the fiscal deficit as indications of recent progress.
However, he noted these are early gains and long-term structural reforms must continue.
Highlighting a 29% rise in tax revenues, the finance minister said the government expects the tax-to-GDP ratio to reach 10.6% by the end of the fiscal year.
He also cited improved debt management and cost-saving measures that have created fiscal space.
He mentioned the inclusion of agricultural income under the tax framework for the first time and called it a noteworthy development.
The finance minister stressed the importance of working closely with provinces under the National Finance Commission for shared financial goals.
The finance minister underlined efforts to expand the formal economy, stating that a large volume of cash remains in circulation.
He said modern tools like digital audits, track-and-trace systems, and faceless customs are being introduced to strengthen enforcement.
He also touched on key social and environmental challenges, including population growth, education, and climate change, and said these areas require integrated efforts and long-term planning.
On the environmental front, Aurangzeb said Pakistan is preparing a Green Taxonomy Framework to support financing for sustainability-linked projects through tools like green bonds and sukuks.
He welcomed recent developments in Pakistan’s engagement with multilateral lenders, including the Asian Development Bank, World Bank, and IMF, noting their support through new financing arrangements.
The minister concluded by calling for reforms in global financial structures to better serve developing countries and proposed the creation of a platform to manage concessional finance flows more efficiently.
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