SBP Policy Rate May Gradually Decrease This Year: Aurangzeb

Finance Muhammad Aurangzeb on Saturday said the central bank’s policy rate may gradually start falling this year. Talking to businesspeople at the regional office of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore, Aurangzeb said he aims to raise the tax-to-GDP ratio to 13 percent in three years and assured that industrialists’ concerns will be addressed in the budget. As reported in previous weeks, the finance minister again used the platform to criticize the term ‘non-filers’. He also acknowledged how people don’t trust the Federal Board of Revenue and called for changing its image through digitization. He said the government is reviewing agreements with Independent Power Producers (IPPs) and increasing financing for Small and Medium Enterprises (SMEs). Finance Minister advocated for resolving distribution company issues to prevent rising electricity prices. Sitting alongside Aurangzeb, Minister of State Ali Pervez Malik promised relief to the business community as fiscal conditions improve, noting that inflation had fallen to 12 percent. He further said authorities were working to register 4.5 million new taxpayers and cutting interest rates. FPCCI called for canceling agreements with IPPs and urged a long-term industry policy to achieve the vision of increasing exports to $100 billion by 2030. They stressed the need to reduce electricity tariffs to boost exports by $6 billion, arguing that increasing exports is key to reducing IMF dependency and achieving economic growth.