Finance Minister Identifies Taxation, Energy and Privatization as Key Reform Areas

Finance Minister Muhammad Aurangzeb has outlined three important reform areas of taxation, energy, and privatization. Speaking at the JP Morgan Seminar on Pakistan’s Economic Policy Outlook, the minister highlighted positive economic indicators including strong performance of the agriculture sector, diminishing inflationary pressures, stable exchange rate, declining trade deficit, and strong remittances. He informed that the government was committed to entering into a larger and extended program with IMF. The minister also attended the Middle East and North Africa (MENAP) Ministers and Governors meeting with the Managing Director of IMF. He thanked IMF, MDBs, and its time-tested sincere bilateral partners for their support in helping the country respond to unprecedented challenges. He further underscored aggressive reforms including broadening the tax net, privatizing loss-making SOEs, expanding the social safety net, and facilitating the private sector. The minister also underlined the importance of rechanneling SDRs, reviewing of surcharges policy, and prioritizing the RST given climate vulnerabilities. The minister called for a more proactive and responsive Global Financial Safety Net to tackle the elevated risks. He welcomed the renewed emphasis of the Fund on Capacity Building through Regional Capacity Development Centers (RCDCs).