Atlantic Council and Pakistan's Finance Minister discuss economic cooperation

By Ikram Ullah Joyia

Finance Minister Senator Muhammad Aurangzeb addressed the Atlantic Council in Washington, highlighting Pakistan's economic reforms and development strategy. He stated that Pakistan has achieved economic stability over the past year, with the IMF and global rating agencies acknowledging the country's economic improvements.

The finance minister emphasized that Pakistan's current account has been in surplus for 14 years, and the government's fiscal discipline has restored investor confidence. He also mentioned the launch of a 300-day national plan for climate resilience and recovery.

Economic Growth and Reforms:

Aurangzeb added that the government aims to increase the tax-to-GDP ratio from 10.2 percent to 13 percent in the coming years. A new National Fiscal Pact has been agreed upon between the federal and provincial governments, and a new NFC Award is expected to be considered in November.

The finance minister emphasized the government's commitment to a market-based and competitive exchange rate, essential for export-led growth. He also highlighted the importance of structural reforms and enhancing productivity capacity to ensure export sustainability.

Aurangzeb mentioned the government's focus on IT, minerals, and the Reko Diq project as key drivers of future growth. The government is also working to bring the agriculture, retail, and real estate sectors into the tax net.