Jefferies Investors Call on Aurangzeb, Capital Markets and Investment Facilitation Discussed  

A delegation of Jefferies Investors, led by Alia Moubayed from Jefferies, called on the Federal Minister for Finance a Senator Muhammad Aurangzeb in Islamabad today.   The delegation included Vasil Nikolov from HBK Investment Management, Khaled Sellami from Barings, Xin Xu from Ashmore, Salman Ahmed from Fidelity, Khurram Sheikh from Jefferies, and Mahmood Ali Shah Bukhari from Ktrade Securities.  The delegation discussed Pakistan’s macroeconomic outlook, investment climate, and ongoing economic reforms. They 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.  The minister highlighted Pakistan’s economic stabilization, emphasizing the government’s commitment to structural reforms in taxation, energy, state-owned enterprises (SOEs), and privatization. He noted that the economy is now in a stable position in quantitative terms and outlined the government’s proactive approach to fiscal discipline, revenue mobilization, and investment facilitation.  He informed the delegation about key tax reforms, including the activation of the National Tax Council to enhance coordination between the federal government and provinces. He elaborated on the expansion of the tax base, with a focus on formally bringing the wholesale, retail, and real estate sectors into the tax net. He also discussed the agricultural income tax, stating that all four provinces have approved the bill, and it is expected to take effect from July 1, 2025. Additionally, he noted that tax policy has been moved from the Federal Board of Revenue (FBR) to the Finance Division, ensuring a more strategic and policy-driven approach.  On the fiscal side, the minister underscored the government’s rightsizing efforts to control expenditures and manage public finances efficiently. He reaffirmed the government’s focus on export-led growth, stating that all sectors must contribute to a structural shift in Pakistan’s economic model.  The discussion also covered capital markets and investment facilitation, with the minister updating the delegation on ongoing Panda Bond discussions as part of Pakistan’s external financing strategy. He further emphasized 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, particularly in capital markets, infrastructure, and emerging sectors. They appreciated the government’s reform agenda and efforts to enhance investor confidence.  The minister reaffirmed the government’s commitment to facilitating foreign investors and welcomed continued engagement with global investment firms. The meeting concluded with a shared understanding to strengthen economic ties and deepen collaboration in financial markets.