Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a Zoom meeting today with the office bearers and members of the Overseas Investors Chamber of Commerce & Industry (OICCI).

During the meeting, the Minister outlined the government’s broader macroeconomic reform agenda and its ongoing commitment to fostering stability, sustainability, and inclusive growth. He highlighted the government’s focus on improving the overall economic framework through structural reforms aimed at enhancing efficiency, transparency, and accountability in key sectors such as taxation, energy, public finance, and state-owned enterprises.

The Minister underscored that progress had been made in stabilizing the economy through disciplined fiscal management, improved coordination between federal and provincial governments, and strengthened institutional mechanisms. These measures, he noted, are central to building a more resilient economic foundation capable of withstanding internal and external pressures.

The Finance Minister reiterated that the government is committed to a policy direction that not only sustains macroeconomic stability but also encourages long-term private sector-led growth. He assured the OICCI leadership that their input remains valuable and that all constructive recommendations would be considered in the budget formulation process.

OICCI acknowledged the government’s efforts in engaging international partners and welcomed the sustained policy focus on structural reforms and investor confidence. The Chamber shared its perspective on expanding the tax base, strengthening enforcement through technology and inter-agency coordination, and deepening institutional engagement with the private sector to support more effective policy development and implementation. It also noted early signs of improved investor sentiment and reaffirmed its willingness to work with the government to reinforce economic progress.

The Chamber also noted that its Business Confidence Survey showed improved sentiment over the past year and expressed hope that recent macroeconomic gains would further boost investor optimism in the coming months.

“Pakistan has reached a pivotal moment of economic recovery and transformation,” said Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.

"After inheriting an economy facing significant challenges—from contracting GDP to depleting reserves—we have stabilized the fundamentals, restored confidence, and reignited growth," he continued.

The Finance Minister made these remarks while addressing Pakistan Conference 2025, titled "Bridging Divides, Building Tomorrow: Pakistan’s Path to Inclusive Growth and Governance," at Harvard University today.

The Pakistan Conference is an annual flagship event that brings together policymakers, academics, business leaders, and students to discuss Pakistan’s economic, political, and social trajectory. Organized by Harvard students with support from university research centers, the event is the largest student-led conference on Pakistan in the United States. The conference serves as a vital forum to advance collaborative solutions, promote global engagement, and showcase the creativity and resilience of the Pakistani people.

Speaking on the occasion, the Finance Minister highlighted key achievements: a historic reduction in inflation to 0.7%, the lowest in 60 years; foreign exchange reserves doubled; a 3% currency appreciation; and a current account surplus exceeding $1 billion in March 2025.

Pakistan also witnessed a 44% increase in Foreign Direct Investment (FDI), a 24% rise in IT exports, and record-high remittances projected at $38 billion. For the first time in 24 years, Pakistan achieved a fiscal surplus, with the highest primary fiscal surplus in two decades. Fitch has upgraded Pakistan’s credit sovereign credit rating to B- with a stable outlook.

Emphasizing that "stability is not an end but a means to an end, " the Finance Minister outlined the government’s strategy including maintaining fiscal discipline, controlling inflation, and pushing ahead with deep structural reforms in energy, taxation, governance, and the management of state-owned enterprises. He flagged major growth opportunities in Pakistan’s rich mineral resources, expanding IT sector, green energy initiatives, and the country’s youthful entrepreneurial population. Strengthening human development, he emphasized, is critical to sustaining high, inclusive growth.


On debt management, the Minister noted that Pakistan successfully reduced its public debt-to-GDP ratio from 75% to 67.2%, with a plan to bring it below 60% over the medium term through prudent fiscal management, enhanced domestic financing, and tax reforms. Rightsizing government expenditures and privatizing loss-making state-owned enterprises are expected to save up to 2% of GDP annually, with efforts focusing on transparency, competitive processes, and investor confidence.

Discussing Pakistan’s financial sector, the Minister laid out plans to build a deeper and more resilient system by expanding digital banking, capital markets, green finance.

Highlighting the impact of climate change, the Minister reaffirmed Pakistan’s commitment to integrating resilience into infrastructure and agriculture. He singled out Resilience and Sustainability Facility (RSF) from IMF and Country Partnership Programme (CPF) approved by the World Bank as anchor for building climate resilience.

"Pakistan’s future will be shaped by bold, necessary choices. By investing in our people, modernizing our economy, and staying committed to reform, Pakistan will emerge stronger, greener, and more competitive," concluded the Minister.

Later, the Minister interacted with the participants and answered their questions with regards to the future roadmap of Pakistan’s economy.

Islamabad, Pakistan – April 27, 2025 — World Liberty Financial (WLF) — the decentralized finance (DeFi) platform backed by the U.S. President Donald Trump — has signed a landmark Letter of Intent (LOI) with the Pakistan Crypto Council (PCC) to accelerate blockchain innovation, stablecoin adoption, and decentralized finance (DeFi) integration across Pakistan.

The WLF delegation — including Zachary Folkman, Zachary Witkoff (son of Steve Witkoff who’s the United States Special Envoy to the Middle East), and Chase Herro — met with Pakistan’s leadership including the Prime Minister, Chief of Army Staff, Deputy Prime Minister, Minister of Information and Minister of Defence to formalize cooperation, marking a major step toward positioning Pakistan as a global leader in the digital finance revolution.

World Liberty Financial is backed by the Trump family, including President Donald Trump and his sons — Eric Trump, Donald Trump Jr., and Barron Trump. President Trump has personally endorsed WLF through his statements on social media, platform, Twitter (X).

World Liberty Financial aims to revolutionize global finance through blockchain innovation. Its core pillars include the USD1 stablecoin, a dollar-pegged digital asset backed by U.S. Treasuries and cash equivalents to facilitate remittances and international trade; the WLFI governance token, a non-transferable token offering community members voting rights within the WLF ecosystem; a decentralized finance (DeFi) infrastructure built on Aave v3 to ensure secure lending and borrowing; and a strong commitment to real-world asset (RWA) tokenization through strategic partnerships with firms like Ondo Finance, bridging the gap between traditional finance and decentralized platforms.

Pakistan’s proactive approach demonstrates its commitment to embracing the next wave of financial innovation. The government has signaled plans to very soon announce comprehensive crypto legalization policies, further strengthening Pakistan’s position as one of the fastest-growing crypto markets in the world.

The Letter of Intent was signed between CEO Pakistan Crypto Council, Bilal Bin Saqib and the World Liberty Financial team during the Pakistan Crypto Council meeting. The meeting included the Finance Minister of Pakistan, CEO of the Council, Governor State Bank of Pakistan, Chairman SECP and Federal Secretary for IT. The Scope of Cooperation between Pakistan Crypto Council and World Liberty Financial outlines collaboration in key areas including,

Launching regulatory sandboxes for blockchain financial product testing, facilitating the responsible growth of DeFi protocols, exploring tokenization of real-world assets like real estate and commodities, expanding stablecoin applications for remittances and trade, and providing strategic advisory on blockchain infrastructure and global regulatory trends.

Pakistan offers one of the world’s most promising digital economies, with over 64% of its population under the age of 30. The country ranks among the top in global crypto adoption, with an estimated $300 billion in annual crypto transactions and 25 million active crypto users.

With rising mobile penetration, a vibrant freelance economy, and strong government interest in blockchain, Pakistan’s youth are uniquely positioned to drive the next wave of Web3 innovation.

On the fifth day of the Spring Meetings of the IMF and World Bank, Finance Minister Senator Muhammad Aurangzeb advocated for climate resilience and underscored the need to attract foreign investment and promote economic diversification through a series of high-level engagements.

At the high-level dialogue of the Fund for Responding to Loss and Damage (FRLD), the Finance Minister highlighted climate change as an existential threat to Pakistan, recalling the devastating 2022 floods. He stressed the urgent need to operationalize the Loss & Damage Fund with simplicity, agility, and robust accountability mechanisms, urging faster disbursements to vulnerable nations.

In a meeting with Mr. Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Senator Aurangzeb appreciated MIGA’s efforts in resolving the Star Hydro power dispute and pledged full support for a potential trade finance facility. He welcomed MIGA’s upcoming mission to Pakistan and expressed hope for finalizing the deal this year.

The Finance Minister later held a productive meeting with Mr. Thomas Lersten, a Senior Official from the U.S. State Department, thanking the U.S. for its strong participation in the Minerals Conference in Pakistan. He reiterated Pakistan’s desire for constructive engagement to address tariff issues for which a high-level trade and investment delegation was expected to visit the U.S.

During discussions with Mr. Makhtar Diop, Managing Director of the International Finance Corporation (IFC), the Minister highlighted Pakistan’s strong macroeconomic indicators, including Fitch’s recent credit rating upgrade. He urged expedited advisory work on Karachi Airport and emphasized subnational governance capacity-building.

The Finance Minister also met with senior representatives of the United States Export-Import Bank, led by Mr. Jim Barrows. He briefed them on Pakistan’s improving macroeconomic fundamentals and fiscal consolidation measures, highlighting the staff-level agreement with the IMF under the EFF and RSF. Providing them with an update on the Reko Diq project, the Finance Minister called for enhanced EXIM Bank support for U.S. investment in Pakistan, expressing a desire to resolve tariff issues.

In talks with JP Morgan Chase, the Finance Minister underscored Pakistan’s stable economic trajectory and plans to diversify markets. He reiterated Pakistan’s intent to return to international capital markets through an inaugural Panda Bond issuance.

While speaking at an IMF panel discussion on “Navigating an Uncertain World,” Minister Aurangzeb emphasized the importance of promoting regional trade amidst global uncertainty. He advocated for sector and market diversification and a shift from import substitution to export-led growth, identifying IT sector as a key driver.

Later, the Finance Minister met with Mr. Dev Jagadesan, Acting CEO of the U.S. International Development Finance Corporation (DFC), to discuss project pipelines, including Reko Diq, and potential U.S.-Pakistan cooperation.

The Minister also met with Baroness Chapman, Minister of State for International Development of the United Kingdom. He thanked her for the UK’s longstanding partnership with Pakistan and briefed her on the World Bank’s 10-year Country Partnership Framework (CPF), focused on population and climate resilience. He emphasized the role of technology in improving tax administration and appreciated REMIT initiative for mapping development assistance.

Finance Minister Senator Muhammad Aurangzeb concluded the fourth day of his visit to Washington, D.C., for the Spring Meetings of the International Monetary Fund (IMF) and the World Bank with a series of constructive meetings with key financial institutions, rating agencies, and global corporations.

The Finance Minister started his engagements by meeting with VISA's Regional Vice President, Mr. Andrew Torre. He expressed appreciation for VISA’s contribution to the digitalization of Pakistan’s economy and the introduction of its various financial products. Minister Aurangzeb noted that VISA’s decision to triple the size of its office in Pakistan and its collaboration with 1-Link and PayPak would significantly contribute to promoting financial inclusion, e-commerce, transaction security, and payment gateways, and facilitate remittances. He assured Mr. Torre of the government’s full support in addressing any operational matters in Pakistan.

Following that, Minister Aurangzeb held a meeting with Mr. Christos Harpanditis, Vice President of Philip Morris International. Acknowledging the company’s longstanding commitment to Pakistan, the Finance Minister highlighted the improving business climate and the government’s taxation reforms focused on people, process, and technology. The Finance Minister emphasized the critical need for effective enforcement and compliance measures to curb the illicit production and sale of cigarettes.

At a seminar titled “Pakistan’s Economic and Monetary Policy Outlook”, hosted by JP Morgan, the Finance Minister briefed institutional investors on Pakistan’s stable macroeconomic indicators, including twin surpluses, declining inflation, robust forex reserves, and sound debt management—factors that contributed to Fitch’s recent sovereign credit rating upgrade. He also expressed deep concern over the loss of tourists’ lives in a terrorist incident in India, reiterating Pakistan’s unequivocal condemnation of terrorism in all forms. The session concluded with an interactive Q&A with investors.

In a meeting with Mr. Masato Kanda, President of the Asian Development Bank (ADB), Minister Aurangzeb congratulated Mr. Kanda on his recent appointment and expressed appreciation for the ADB’s enduring partnership with Pakistan and its contributions to the country’s development through initiatives such as the Country Partnership Strategy 2026-2030 and budgetary support.

The two sides discussed ADB’s project pipeline and committed to accelerating project execution. The Finance Minister requested ADB’s support for a partial credit guarantee for the issuance of the Panda bond and expressed hope for the materialization of budgetary support this year. He assured Mr. Kanda of Pakistan’s delegation’s participation in the CAREC meeting scheduled for November 2025.

The Finance Minister held separate meetings with Fitch Ratings and Moody’s, thanking Fitch for upgrading Pakistan’s sovereign rating to B- and outlining progress on structural reforms in energy, taxation, SOEs, public finance, and debt management. With Moody’s, he highlighted strong economic indicators, including low inflation, fiscal surpluses, and record remittances, while emphasizing reforms to broaden the tax base. On trade matters, he reiterated Pakistan’s commitment to constructive engagement with the US Administration.

The Finance Minister met with Mr. Sangbu Kim, World Bank’s Vice President for Digital Transformation, and highlighted Pakistan’s progress under the Digital Pakistan Policy, particularly in taxation reforms and the end-to-end digitization of the FBR (Federal Board of Revenue). Emphasizing the need for horizontal integration across government entities, he sought the Bank’s support in operationalizing the Country Partnership Framework (CPF) through technology.

At the Vulnerable 20 (V20) Ministerial Dialogue, themed “Enabling Climate Prosperity,” Senator Aurangzeb outlined Pakistan’s Climate Financial Strategy and the development of a Climate Prosperity Plan. He highlighted the recent staff-level agreement with the IMF under the Resilience and Sustainability Facility (RSF) and noted that the World Bank’s 10-year CPF prioritizes climate resilience and decarbonization. The Minister called for reforms in international financial architecture to support climate-vulnerable nations and stressed the need for capacity-building to develop bankable climate projects.

The Finance Minister also interacted with members of the Pakistan Bank-Fund Staff Association (PBFSA), briefing them on Pakistan’s improving macroeconomic indicators, including the successful IMF staff-level agreement under the Extended Fund Facility (EFF) and RSF. He also discussed the World Bank’s 10-year CPF, which addresses Pakistan’s challenges in population growth and climate change, and reiterated the government’s commitment to structural reforms.

In a meeting with Mr. Jihad Azour, IMF Director for the Middle East and Central Asia, the Finance Minister thanked the IMF for the successful staff-level agreement on Pakistan’s economic program. He reaffirmed Pakistan’s commitment to sustaining reforms, citing Fitch’s sovereign credit rating upgrade (CCC+ to B-) as validation of the country’s progress.

Senator Aurangzeb concluded his day with a meeting with the Standard Chartered Bank delegation led by Mr. Roberto Hoornweg, appreciating the bank’s role in bridging Pakistan’s financing gap during a critical period. He briefed the team on Pakistan’s macroeconomic stability, privatization program, and plans to re-enter international capital markets following the Fitch rating upgrade.

Finance Minister Senator Muhammad Aurangzeb concluded the third day of his visit to Washington, D.C., for the annual spring meetings of the International Monetary Fund (IMF) and the World Bank with a series of significant engagements, focusing on bolstering bilateral relations and advancing Pakistan’s economic reform agenda.

The Finance Minister held a productive meeting with H.E. Lan Fo’an, Finance Minister of China. Recalling their previous meeting in Beijing in July 2024, Minister Aurangzeb expressed gratitude for China’s unwavering support for Pakistan’s socio-economic development and its backing of the IMF’s Extended Fund Facility (EFF) program. He provided an update on Pakistan’s ongoing reforms in taxation, energy, privatization, public finance, and State-Owned Enterprises (SOEs). The Finance Minister also requested the People's Bank of China’s (PBOC) support to expedite the Panda bond issuance process and extended an invitation for the Chinese Finance Minister to visit Pakistan.

Later, the Finance Minister met with the Saudi Minister of Finance, H.E. Mohammed Aljadaan. He thanked Saudi Arabia for its enduring support for Pakistan’s economic development, including its assistance with the IMF program. Mr. Aurangzeb welcomed Saudi investments in Pakistan and reaffirmed the government’s commitment to sustained reform efforts. He also extended an invitation to the Saudi Finance Minister to visit Pakistan.

Furthermore, the Finance Minister also called on Her Majesty Queen Máxima of the Netherlands, sharing progress on financial inclusion initiatives for Pakistani women, supported by the National Financial Inclusion Strategy and international partners. He underscored the government’s commitment to women’s education, entrepreneurship, and digital access, emphasizing the need for cross-entity data sharing to enhance financial inclusion.

Continuing with his engagements, Senator Aurangzeb met with H.E. Mehmet Şimşek, Türkiye’s Finance Minister, emphasizing the strong historical ties between the two countries and the untapped potential for trade and investment. Mr. Aurangzeb noted that current trade and investment levels do not reflect the full potential and invited Turkish investors to explore opportunities in Pakistan’s dairy, cheese, and livestock sectors.

During a meeting with H.E. Mohamed Bin Hadi Alm Hussaini, Minister of State for Financial Affairs, UAE, Minister Aurangzeb briefed his UAE counterpart on Pakistan’s economic indicators, the recent sovereign rating upgrade by Fitch, and the government’s privatization agenda. The Finance Minister appreciated the UAE’s investment interest at both government-to-government (G2G) and business-to-business (B2B) levels and stressed the need to translate memoranda of understanding (MoUs) into concrete agreements. He also expressed interest in learning from the UAE’s experience in regulating the cryptocurrency.

The Finance Minister then participated in the 13th Ministerial meeting of the Coalition of Finance Ministers for Climate Action (CFMCA). In his statement, he outlined Pakistan’s development of a Climate Prosperity Plan (CPP) and a Climate Finance Strategy.

Highlighting the climate-focused pillars on resilience and decarbonization within the 10-year Country Partnership Framework (CPF) with the World Bank, the Finance Minister also informed the meeting that Pakistan had reached a Staff Level Agreement on a new arrangement under the Resilience and Sustainability Facility (RSF) to support long-term balance of payments stability against climate change. He emphasized the importance of integrating climate considerations into macroeconomic and financial policies, while acknowledging the challenges of capacity building in both public and private sectors for bankable and investable projects.

During the MENAP Ministers/Governors Meeting with IMF Managing Director, Ms. Kristalina Georgieva, Minister Aurangzeb acknowledged the increased global uncertainty since the Al-Ula Conference on Emerging Markets. The Finance Minister stressed the need of focusing on structural reforms in taxation, energy, privatization, SOEs, and government rightsizing. He cited the recent credit ratings upgrade by Fitch as an external validation of Pakistan’s reform trajectory.

While identifying agriculture, IT, and mines and minerals as key growth sectors, the Minister highlighted the importance of regional trade corridors amidst global trade fragmentation. He thanked the World Bank for the 10-year CPF and its focus on climate change and population, and made a special mention of Pakistan’s Staff Level Agreement under the RSF. He expressed interest in IMF technical support for capacity building and endorsed the World Bank’s agenda for job creation through private sector engagement.

In a meeting with Ms. Gargee Ghosh, President of Global Policy and Advocacy at the Gates Foundation, Minister Aurangzeb appreciated the Foundation’s contributions to polio eradication, maternal and child health, nutrition, family planning, and vaccine delivery in Pakistan. He also commended the Foundation’s initiative to digitize Pakistan’s tax system and discussed integrating payment platforms like Buna and Raast. The Minister requested continued support for Pakistan’s polio eradication efforts and invited the Foundation to attend an event on May 7, 2025, marking the launch of Pakistan’s national hepatitis C elimination program.

Earlier in the day, the Finance Minister participated in a fireside chat hosted by Mr. Masood Ahmed, President Emeritus of the Center for Global Development, in Washington, D.C. He reaffirmed Pakistan’s commitment to structural reforms and sustainable growth. The event concluded with a Q&A session.

In another significant meeting, Minister Aurangzeb met with Mr. Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB). He thanked the AIIB for its longstanding support for Pakistan’s socio-economic development and discussed the bank’s financing for ongoing and future projects. He reiterated Pakistan’s desire to issue the inaugural Panda Bond during the current calendar year and expressed keenness to sustain the current momentum of engagement with the AIIB.

The Finance Minister also met with the team of S&P Global in Washington, D.C, and welcomed their upcoming visit to Pakistan. While briefing them on the country’s macroeconomic outlook, fiscal consolidation, and growth catalysts, the Finance Minister highlighted Fitch’s recent credit rating upgrade as an external validation of Pakistan’s reform agenda and expressed hope that S&P Global would also consider upgrading Pakistan’s ratings.

The Embassy of Pakistan in Washington DC hosted a landmark economic dialogue on the sidelines of the IMF and World Bank Spring Meetings, bringing together Pakistan’s economic leadership, global financial institutions, and corporate representatives from the United States.

The event showcased Pakistan’s remarkable economic turnaround and its potential as a global investment destination.

Finance Minister Senator Muhammad Aurangzeb, in his keynote address, emphasized the pivotal role of the private sector in driving Pakistan’s economic future, stating that the government’s role was to provide policy frameworks and ensure continuity. He described this shift as a “mindset and societal change,” likening it to the transformative impact of artificial intelligence.

Engaging in a candid dialogue, the Finance Minister addressed questions related to the ease of doing business and reiterated the Government’s unwavering commitment to the reform process. He identified population growth and climate change as two major existential issues, calling for private-sector collaboration on investable projects, leveraging available financing and technical expertise. He reaffirmed the Prime Minister’s vision of running Pakistan as “Pakistan Inc.” with the government acting as public servants to facilitate investors.

Ambassador Rizwan Saeed Sheikh, in his welcome remarks, highlighted Pakistan’s geostrategic and geo-economic significance as a market of 250 million people and a gateway to Central Asia, China, the GCC, and Afro-Asian regions. He also showcased the country’s economic performance, as acknowledged at the IMF-World Bank forums, and underlined Pakistan’s strengths in the IT sector and mineral resources. He announced plans for recurring events to strengthen U.S.-Pakistan business ties. “As Pakistan’s Chief Marketing Officer, I invite you to profit from the promise of Pakistan,” he added.

Mr. Amir Ibrahim, CEO of Jazz, Pakistan’s largest cellular provider, lauded the country’s economic stabilization over the past 15 months. He urged optimism, noting Jazz’s transformation into a digital services platform reaching over 100 million users. He stressed the importance of inclusive digital infrastructure and working with regulators to democratize access to technology.

Mr. Christos Harpantidis, Vice President External Affairs at Philip Morris, acknowledged the company’s $800 million investment in Pakistan and shared plans to expand further. He attributed this decision to economic stability, controlled inflation, and exchange rate predictability.

Mr. Husnain Aslam, CEO of TRG, highlighted the global footprint of his IT holding company employing 35,000 individuals, including 9,000 in Pakistan. He supported the Prime Minister’s goal of scaling IT exports from $3 billion to $25–30 billion, citing Pakistan’s telecom infrastructure and young talent pool.

Mr. Martin Raiser, World Bank Vice President for South Asia, commended Pakistan’s economic turnaround driven by fiscal, energy, and exchange rate reforms. He underscored the need for increased investment and growth, and reaffirmed the World Bank’s support through its 10-year, $40 billion Country Partnership Framework.

Mr. Bahadur Bijani, Executive Director at the IMF, praised Pakistan’s policy consistency and leadership, acknowledging record-low inflation and currency stabilization. He emphasized the importance of protecting these hard-earned gains and lauded the leadership of Finance Minister Aurangzeb, Governor Jameel Ahmad, and Prime Minister Shehbaz Sharif.

Mr. Charles Freeman, Senior Vice President for Asia at the U.S. Chamber of Commerce, announced the upcoming visit of a U.S. Chamber and U.S.-Pakistan Business Council delegation to Pakistan—the first in seven years. He praised Pakistan’s renewed stability, transparency, and predictability.

Later, the Finance Minister interacted with corporate leaders and addressed their queries regarding Pakistan’s investment potential.

Finance Minister Senator Muhammad Aurangzeb engaged in a series of high-level meetings on the second day of his visit to Washington, D.C., for the annual spring meetings of the International Monetary Fund (IMF) and the World Bank, focusing on Pakistan’s economic stability, ongoing reforms, and investment opportunities.

Minister Aurangzeb began his day by participating in the G-24 Finance Ministers and Central Bank Governors’ Meeting. As the Second Vice Chair of the G-24, he delivered a statement highlighting Pakistan's macroeconomic stability, achieved through resilient banking systems and sustained structural reforms. He emphasized the need to stay the course on reforms amidst global economic challenges, including geopolitical dynamics, trade fragmentation, and protectionism. Additionally, he underscored the importance of regional corridors, trade connectivity, and South-South collaboration to enhance investment and trade flows.

During an IMF-hosted panel discussion titled “Revenue Mobilization in the Medium Term,” the finance minister outlined Pakistan’s efforts to broaden and deepen the tax base to ensure that sectors like agriculture, real estate, and retail contribute proportionally to GDP.

“These strategies include enhancing contributions from key economic sectors, transforming the Federal Board of Revenue (FBR) through technological advancements and process improvements, minimizing taxpayer-collector interface, strengthening enforcement and compliance, and utilizing AI for customized audits,” said the finance minister.

Later, Minister Aurangzeb participated in a fireside chat at the Atlantic Council’s GeoEconomics Center, addressing “Challenges and Opportunities for the Pakistani Economy through 2025 and Beyond.” He outlined the government’s reform agenda, which includes digitalization of FBR, enhanced provincial involvement in the tax collection, and provinces’ legislation on the Agriculture Income Tax.

"Through ongoing efforts to rationalize federal spending and collaborate with provinces under a National Fiscal Pact, we're building sustainable economic foundations," added the Minister.

The finance minister also addressed climate and population challenges, highlighting the World Bank’s 10-year Country Partnership Framework (CPF) for Pakistan. The Minister affirmed the government’s commitment to launching the Panda Bond and appreciated multilateral institutions’ efforts in ensuring better coordination on risk analysis and due diligence.

"We are finalizing a green taxonomy framework through the State Bank, paving the way for innovative instruments such as green bonds, green sukuks, and the country’s inaugural Panda bond, proceeds of which will be linked to SDG-aligned projects,” said Senator Aurangzeb.

Expressing the government’s desire for improved trade relations with the U.S., Mr. Aurangzeb emphasized plans for constructive engagement with the U.S. to address trade imbalances, with a high-level delegation expected to visit soon.

In a meeting with institutional investors, Minister Aurangzeb provided updates on Pakistan’s economic outlook, fiscal and monetary developments, and reform progress. He highlighted the country’s macroeconomic stabilization and the recent credit rating upgrade by Fitch, which has opened avenues for Pakistan’s return to financial markets through enhanced investor confidence that.

The finance minister also met with Mr. Martin Raiser, the World Bank’s Vice President for South Asia, where he expressed gratitude for the approval of the 10-year CPF. They discussed accelerated operationalization of the CPF, need for increased private sector investment, and importance of addressing project implementation bottlenecks.

Furthermore, Minister Aurangzeb held a meeting with the Deutsche Bank team, led by Ms. Myriam Ouazzani, Managing Director for the MENA region. He expressed Pakistan’s interest in returning to financial markets, including the issuance of Panda and ESG bonds, based on the country’s improved macroeconomic stability and credit ratings.

Separately, during talks with Moody’s commercial team, the finance minister briefed them on Pakistan’s fiscal and current account surpluses, declining inflation, stable exchange rates, and foreign reserves. Discussions also covered the Panda Bond initiative, with both sides agreeing to explore future collaboration.

In an important and productive meeting with H.E. Sultan bin Abdulrahman Al-Murshid, CEO of the Saudi Fund for Development (SFD), Finance Minister Aurangzeb recalled his visit to Saudi Arabia for the Al-ula Conference on Emerging Markets and his meeting with the Saudi Finance Minister. He briefed H.E. Al-Murshid on Pakistan’s improving macroeconomic indicators, including the recent credit rating upgrade by Moody’s.

Expressing appreciation for the G2G and B2B interest in investment projects in Pakistan, Minister Aurangzeb requested the expedited disbursement of funds under the Saudi Oil Facility, assuring prompt submission of oil shipment documentation. Both sides reviewed the existing portfolio, expressing satisfaction over the progress, with the finance minister seeking financial support from SFD for the N-25 project.

In a pivotal step toward strengthening regional cooperation in the digital economy, the Foreign Minister of Malaysia Mohamad Bin Haji Hasan met with Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), to explore collaborative opportunities in blockchain technology, digital assets, and Shariah-compliant finance.

The meeting focused on laying the groundwork for a Pakistan-Malaysia Digital Finance Partnership — a forward-looking initiative aimed at co-developing FATF-compliant, Shariah-aligned digital asset frameworks that can serve as a model for the broader Organisation of Islamic Cooperation (OIC).

“Malaysia’s leadership in Islamic finance and Pakistan’s momentum in crypto regulation form a natural alliance,” said Bilal Bin Saqib. “Together, we have a historic opportunity to set global standards for ethical innovation in digital finance — from halal stablecoins and tokenized sukuks to compliant regulatory sandboxes and youth empowerment.”

The Pakistan Crypto Council is leading efforts to design a passportable crypto regulatory framework tailored to emerging markets — one that fosters innovation while ensuring full compliance with international standards.

During the meeting, both parties expressed strong alignment on key areas of cooperation, including:
• Regulatory coordination between financial authorities
• Cross-border talent development and Web3 education initiatives

This milestone engagement signals the beginning of a deeper economic and technological partnership between Pakistan and Malaysia — driven by a shared vision to build the future of finance through values-based innovation and strategic collaboration.

Notably, this meeting follows the recent announcement that Binance Founder Changpeng Zhao (“CZ”) has joined the Pakistan Crypto Council as a Strategic Advisor, reinforcing global confidence in Pakistan’s emerging leadership role in the digital asset space.

Finance Minister Senator Muhammad Aurangzeb began his visit to Washington, D.C., today by conducting a series of high-level meetings on the sidelines of the 2025 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group.

In his first meeting of the day, the Finance Minister met with the Deloitte delegation and apprised them of Pakistan’s macroeconomic outlook, the government’s sectoral development agenda, and its export-led growth priorities. Both sides explored potential collaboration in energy sector reforms, critical minerals extraction and marketing, privatization, technology, crypto policy, and the operationalization of the Country Partnership Framework (CPF). Minister Aurangzeb also welcomed Deloitte’s planned visit to Pakistan in May 2025 to further deepen engagement.

Later, the Finance Minister met with Ms. Hela Cheikhrouhou, Regional Vice President of the International Finance Corporation (IFC), and discussed private sector reforms, energy transition, sound municipal finance, and full employment initiatives. He reviewed progress on Diversified Payment Rights (DPR) and commended the IFC’s pivotal role in securing USD 2.5 billion in debt financing for the Reko Diq Copper & Gold Mine Project in Balochistan. The Minister emphasized the importance of ensuring that local communities benefit from the project’s economic gains.

During his meeting with IMF Managing Director Ms. Kristalina Georgieva, Minister Aurangzeb thanked the IMF team for reaching a Staff-Level Agreement on the First Review under the Extended Fund Facility (EFF) and a new arrangement under the Resilience and Sustainability Facility (RSF). He reiterated the Government of Pakistan’s commitment to maintaining the reform momentum and extended an invitation from the Prime Minister of Pakistan for Ms. Georgieva to visit the country.

The Finance Minister also held a meeting with Mr. Robert Kaproth, Assistant Secretary of the U.S. Department of the Treasury, and briefed him on Pakistan’s improving macroeconomic indicators. He highlighted ongoing reforms in taxation, energy, privatization, state-owned enterprises (SOEs), pensions, and debt management. The Minister underscored the significance of the World Bank’s Country Partnership Framework (CPF) in addressing Pakistan’s critical challenges, including population growth and climate resilience.

In his productive meeting with Mr. Ajay Banga, President of the World Bank Group, the Finance Minister expressed gratitude to the World Bank for its historical support to Pakistan and commended its leadership in developing a transformative CPF—a decade-long strategic roadmap centered around measurable impacts and outcomes. He appreciated the World Bank’s ongoing assistance in crafting a comprehensive implementation strategy and action plan to operationalize the CPF while simultaneously enhancing overall efficiency. The Minister also provided a detailed overview of Pakistan’s macroeconomic turnaround and reaffirmed the government’s unwavering commitment to ensuring sustainable economic stability.

Earlier in the day, at a luncheon hosted by the US-Pakistan Business Council at the U.S. Chamber of Commerce, the Finance Minister engaged with American corporate leaders, detailing Pakistan’s economic progress and reform measures in taxation, energy, SOEs, and privatization. He emphasized the importance of regional trade, market diversification, and sectoral expansion. He thanked the U.S. delegation for participating in the Pakistan Mineral Investment Forum 2025 and expressed Pakistan’s commitment to continued collaboration in the mining and minerals sector.

Finance Minister Senator Muhammad Aurangzeb concluded the day by holding a meeting with H.E. Mohamed Nasheed, Secretary General of the Climate Vulnerable Forum & Vulnerable 20 (CVF-V20). Minister Aurangzeb appreciated the recent visit of the CVF Secretariat team to Pakistan and the collaborative efforts to develop a Climate Prosperity Plan (CPP), which identifies financing avenues for climate-resilient projects. He highlighted Pakistan’s landmark decade-long CPF with the World Bank, noting that four of its six key outcomes directly address Pakistan’s existential challenges of climate change and population pressures. The Minister also briefed on progress under the IMF’s Resilience and Sustainability Facility (RSF) and reiterated Pakistan’s commitment to finalizing CPP projects through a phased financing approach.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb today chaired a high-level meeting on priority sector lending, attended by senior officials from the State Bank of Pakistan, the Pakistan Banks Association, and representatives from leading banks. The session focused on aligning the financial sector and its lending to priority sectors with the government’s agenda of driving an export-led economic revival and future growth.

The Minister emphasized the critical role of banks in supporting and catalyzing export-oriented growth, stating that the government is fully committed to this strategic direction and actively facilitating foreign direct investment (FDI) that contributes to creating exportable surplus in key sectors.

During the meeting, the Minister underlined the importance of recent investor engagement, referencing the successful Pakistan Minerals Summit which demonstrated the strong interest of domestic investors in high-value projects. He noted that such developments send a positive signal to international stakeholders and build investor confidence in Pakistan’s economic trajectory.

A notable example shared was the commitment by Maersk Line, a major global container shipping company, to invest $2 billion in Pakistan’s maritime and port infrastructure. This, he pointed out, reflects the growing regional importance of trade corridors and the emerging realities of real market dynamics. The Minister reiterated the role of the banking and financial sector in unlocking and expanding such strategic opportunities, especially in logistics, trade facilitation, and industrial support.

Highlighting the government’s commitment to realistic and inclusive policy formulation, the Minister informed the attendees that the budget process had been preponed this year. In a departure from past practice, he had personally visited various chambers of commerce months in advance to solicit proposals and feedback from stakeholders, ensuring that the upcoming federal budget is rooted in ground realities and geared toward sustainable growth.

He noted that while the government has achieved macroeconomic stability, this must be viewed as a foundation rather than a final destination. The objective is not to pursue rapid and unsustainable expansion, but to ensure that the economy grows on a durable, investment-led, and export-oriented basis. He cautioned against the temptation of short-term gains and underscored the need to avoid the cyclical boom-and-bust patterns that have historically hindered economic progress.

Earlier, Mr. Zafar Masud, Chairman of the Pakistan Banks' Association (PBA) gave a detailed presentation to the Minister and his team on implementation status of the support provided by the banks for the three key sectors of agriculture, small and medium enterprises (SMEs), and digital & technology and various new initiatives, including development of electronic warehouse receipt finance (EWR), SME environment and performance index (SEPI), financial data exchange (FDX), housing finance and various schemes for efficient use of energy and water in Pakistan.

The Minister concluded with a call for coordinated efforts among banks, policymakers, and investors to sustain momentum and translate policy stability into real economic transformation. He stressed the importance of developing a robust mechanism for providing formal cash flow-based credit to smallholder farmers without collateral by leveraging fintech solutions such as remote sensing and embedded finance in line with the vision of the Prime Minister. The government remains determined to maintain its course, encouraging long-term investments and exports that underpin a resilient and thriving economy.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, today held a meeting with a high-level delegation of International Finance Corporation (IFC) led by Ms. Linda Rudo Munyengeterwa, Global Director for Public Private Privatization & Corporate Finance Advisory of the International Finance Corporation (IFC), at the Finance Division today.

During the meeting with the Finance Minister and his team, Ms. Munyengeterwa reiterated IFC’s commitment to Pakistan and expressed a strong interest in supporting the country’s macroeconomic reform, investment, and privatization initiatives. The delegation conveyed that they had come to Pakistan with an open mind, intending to explore the market and engage with key government stakeholders to identify potential areas for investment.

IFC’s extensive global experience across various sectors, including infrastructure, energy, transport, public finance, and privatization, was highlighted as a valuable asset that could be leveraged to support Pakistan’s development agenda. The delegation emphasized their readiness to partner with Pakistan in exploring viable opportunities for collaboration and investment.

The Finance Minister welcomed the IFC delegation and acknowledged the valuable technical expertise and advisory support extended by the institution in various sectors. He noted that macroeconomic stability, which forms the foundation of economic resilience, had been largely restored in Pakistan. He further underscored the government’s commitment to maintaining this stability and ensuring long-term, sustainable economic growth.

Recognizing the fiscal challenges in managing public finances and meeting the country’s expanding development needs, the Minister stressed the importance of utilizing the expertise and financial resources of international institutions like IFC through public-private partnerships. He affirmed that such collaborations could facilitate the implementation of essential reforms and enhance efforts to develop efficient energy, transport, and infrastructure systems in response to the demands of a growing population.

The IFC delegation reaffirmed their willingness to work closely with stakeholders in Pakistan, offering both advisory services and investment support aimed at achieving long-term and inclusive economic development.

A high-level meeting of the Committee constituted by the Prime Minister on Social Impact Financing (SIF) was held today at the Finance Division, with Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, in the chair. The meeting was attended by senior representatives from key government ministries and departments, the State Bank of Pakistan, Securities and Exchange Commission of Pakistan, and the country’s leading microfinance institutions, philanthropic organizations, and social impact partners.

The session focused on the government’s ongoing effort to design a robust, long-term social impact financing solution tailored to Pakistan’s pressing development and environmental challenges. The Finance Minister introduced the draft Social Impact Financing (SIF) Framework, providing strategic vision to unlock innovative financial instruments that are aligned with national priorities and focused on achieving measurable, sustainable and Impactful development outcomes, particularly for marginalized and vulnerable communities. It aims to orient public and private capital flows toward real-world improvements in key areas such as education, health, poverty alleviation, population stabilization, and climate resilience.

Participants engaged in comprehensive discussions on the structure and design of the SIF Framework, including its priority pillars, funding mechanisms, risk mitigation tools, and governance roadmap. Members also explored funding sources, implementation workstreams, and the role of performance-based instruments such as impact bonds, performance-linked grants, and guarantees. A recurring theme throughout the meeting was the necessity of linking funding to outcomes rather than inputs, ensuring accountability and transparency in resource allocation and service delivery.

The Finance Minister stressed the importance of developing a sound policy framework rooted in strong public-private partnerships, emphasizing that sustainable and scalable interventions are essential to create impact and move away from action-oriented to result-oriented approaches to address Pakistan’s most pressing development challenges. He highlighted poverty alleviation, health and wellbeing, education and human capital, population stabilization, and climate resilience as key priority areas requiring focused attention.

Senator Aurangzeb further underlined the imperative of tracking and tracing the development impact of these interventions, particularly in alignment with national economic priorities and Pakistan’s commitments to the Sustainable Development Goals (SDGs). Stressing the urgency of reform, the Finance Minister called for swift action in finalizing the framework and moving towards its implementation.

The meeting concluded with agreement on several next steps, including the finalization of the draft SIF Framework by next week, formation of task forces aligned with proposed fund activities, and a comprehensive update to the committee in early May. The update will include proposals for an implementable fund structure, governance model, and priority impact-focused initiatives, ensuring that Pakistan is well-positioned to attract innovative financing for inclusive and sustainable development.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a follow-up meeting today with Dr. Samuel Rizk, Resident Representative of the United Nations Development Programme (UNDP) Pakistan, who was accompanied by his team.

During the meeting, the UNDP team presented an overview of UNDP’s ongoing technical assistance to Pakistan in the development of bankable projects aimed at attracting investment and climate financing. Dr. Rizk also provided a briefing on the upcoming 4th International Conference on Financing for Development (FfD4) to be held in Spain later this year.

Key discussions focused on finalizing a portfolio of bankable projects and ensuring Pakistan's proactive participation in FfD4 with a robust, investment-ready pipeline. Dr. Rizk acknowledged the Government of Pakistan’s policy leadership in steering investment and climate financing initiatives in collaboration with government stakeholders and development partners.

Highlighting the significance of Pakistan’s improving macroeconomic indicators and enhanced market ratings, Dr. Rizk noted that FfD4 presents a strategic platform for Pakistan to engage global investors and unlock international climate and development financing.

In line with the Finance Minister’s earlier guidance, Dr. Rizk informed that UNDP, in coordination with the Ministry of Climate Change & Environmental Coordination (MoCC&EC) and the Public-Private Partnership Authority (P3A), has identified five preliminary bankable projects valued at over USD 1 billion. These projects span critical sectors, including green exports, biowaste management, road infrastructure, domestic green private sector development, and green real estate.

Dr. Rizk also shared that a preparatory mission from the UN Department of Economic and Social Affairs (DESA) will visit Islamabad next week. The mission will facilitate planning and capacity-building sessions with federal and provincial governments, key stakeholders, and private sector partners in preparation for Pakistan’s participation in FfD4.

Minister Aurangzeb expressed appreciation for UNDP’s continued support in advancing Pakistan’s climate and Sustainable Development Goal (SDG) financing agenda. He reaffirmed the government’s commitment to a “whole-of-government” approach, directing the Inter-Ministerial Committee—comprising senior officials from the Ministries of Foreign Affairs, Planning & Development, Climate Change, Economic Affairs Division, Finance, and P3A—to work collaboratively on a dynamic, investment-attractive portfolio aligned with Pakistan’s structural reform and climate resilience priorities.

Concluding the meeting, the Finance Minister reaffirmed the Government of Pakistan’s resolve to work closely with UNDP and other development partners to drive sustainable, inclusive economic growth and enhance Pakistan’s role in global climate and development financing forums.

A meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) was held today at the Finance Division under the chairmanship of the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

Federal Minister for Housing and Works Mian Riaz Hussain Pirzada, Federal Minister for Maritime Affairs, Junaid Anwar Chaudhry, Governor State Bank of Pakistan, Attorney General of Pakistan, federal secretaries and key officials from relevant ministries and government departments were also present.

The Committee considered a summary from the Finance Division regarding “Re-merger of National Security Printing Company (NSPC) — State Owned Enterprise (SOE) with Pakistan Security Printing Corporation (PSPC) owned by the State Bank of Pakistan (SBP)” and “Acquisition of State Bank of Pakistan’s (SBP’s) shares in Zarai Taraqiati Bank Limited (ZTBL).” The Committee approved the proposal to execute the Share Purchase Agreement between the Finance Division and PSPC for acquisition of NSPC at a value of PKR 41,774 million. It further allowed the Finance Division to purchase SBP’s 4,015,599,174 equity shares in ZTBL at PKR 8,472.914 million and to acquire SBP’s preference shares in ZTBL at a fixed value of PKR 54,461.536 million. The Committee also approved the adjustment of NSPC transaction proceeds against the ZTBL shares transaction, with the remaining amount to be adjusted against SBP’s retained surplus profit.

The Committee also considered a summary submitted by the Power Division regarding Reconstitution of Board of Directors of GENCOs Holding Company Limited (GHCL), Jamshoro Power Generation Company Limited (JPCL), Central Power Generation Company Limited (CPGCL), Northern Power Generation Company Limited (NPGCL), Lakhra Power Generation Company Limited (LPGCL) and National Power Parks Management Company Limited (NPPMCL).

The Committee was apprised that the Boards of these entities were non-compliant with the updated SOEs Act and Policy, 2023. Based on the recommendations of the Board Nomination Committee and approval of the Prime Minister, the Committee approved the nominations for Independent Directors, Ex-Officio Directors, and CEOs/Executive Directors.

The Committee also deliberated on a summary submitted by the Ministry of Industries and Production regarding the “Board of Directors – National Productivity Organization (NPO).” The proposal for appointment of four ex-officio members and five private sector members was finalized by the Board Nomination Committee after due vetting by the concerned reporting agencies. The Committee approved the proposed appointments.

The Committee further considered a summary from the Ministry of Industries and Production regarding the “Re-constitution of Board of Governors of Pakistan Institute of Management (PIM), Karachi.” The Prime Minister’s Office had approved the nomination of three ex-officio members and two independent members. The Committee approved the proposed reconstitution.

The Committee took up a summary from the Ministry of Overseas Pakistanis and Human Resource Development regarding the “Reconstitution of the Board of Governors of Overseas Pakistanis’ Foundation (OPF).” In accordance with Clause 24 of the SOEs Policy 2023, the Committee approved the appointment of three additional independent members to complete the 11-member Board.

The Committee considered a summary submitted by the Ministry of Railways titled “Categorization of Pakistan Railways as Strategic & Essential under the SOE(s) Act & Policy, 2023.” The Railway Board, comprising key secretaries, had classified Pakistan Railways as strategic and essential. The Committee approved the proposal accordingly.

The Chair reaffirmed the Government’s commitment to ensuring transparency, accountability, and operational efficiency in the governance of state-owned enterprises.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with a delegation from global professional services firm Alvarez & Marsal at the Finance Division today.

The meeting was part of ongoing discussions regarding the firm’s potential involvement in Pakistan’s privatization processes and the establishment of a sovereign wealth fund. The Alvarez & Marsal delegation was led by Mr. Peter Briggs, Division Executive at Alvarez & Marsal, along with Mr. Abdalla ElEbiary, Managing Director, and Mr. Reza Baqir, Global Head of Sovereign Advisory.

During the meeting, Mr. Peter Briggs emphasized Alvarez & Marsal’s strong commitment to investing in Pakistan, highlighting the firm's long-term strategy in the region's expanding markets. He mentioned that the firm is considering opening an office in Pakistan as part of its broader commitment to assist the government in its privatization efforts and to attract potential global investors to the country. According to Mr. Briggs, Pakistan’s growing market offers significant opportunities for investment and long-term growth.

Senator Muhammad Aurangzeb welcomed the interest shown by Alvarez & Marsal, recognizing the firm’s expertise in privatization and sovereign advisory. The Finance Minister expressed the government’s appreciation for their potential contribution to Pakistan’s efforts to unlock investment opportunities, particularly in the privatization of power distribution companies. He highlighted that the government was committed to accelerating the privatization process, with 24 state-owned entities already added to the privatization pipeline.

Furthermore, Senator Aurangzeb discussed the macroeconomic progress made over the last 14 months, noting the stabilization of Pakistan’s economy, which has rejuvenated the market and created new growth avenues. He also referenced recent announcements by prominent business groups, such as global shipping giant AP Moller Maersk, which has committed to a large investment in the maritime sector. Along with this, local investors and entrepreneurs are also stepping forward with renewed enthusiasm to seize the growth opportunities in the country. This, the Minister stated, is a clear indication of the economic progress and a promising sign for Pakistan’s development.

In closing, the Minister reiterated that the government’s vision, aligned with the objectives of Prime Minister Shehbaz Sharif, is to bolster trade, investment, and tourism in Pakistan, tapping into the region’s growing economic corridor. He expressed hope that the partnership with Alvarez & Marsal would pave the way for a prosperous future for Pakistan and its economy.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb today met the Secretary General of the Economic Cooperation Organisation (ECO), Dr. Asad Majeed Khan who called on him at the Finance Division today.

The meeting focused on enhancing regional economic cooperation and discussed initiatives to strengthen the role of the ECO in promoting trade, commerce, and tourism among its 10 member countries.

Dr. Asad Majeed Khan briefed the Finance Minister on the profile and strategic role of the ECO in fostering regional economic cooperation. He emphasized the importance of regional trade and connectivity, particularly in the context of emerging trade corridors and markets in the region. Both leaders agreed on the need for further strengthening regional trade and connectivity, which are critical in advancing the economic development of the member countries.

The Secretary General also highlighted the strides taken by the ECO since his appointment to enhance trade and tourism through intensified engagement with member countries. Dr. Khan presented ways to make the organization more robust and dynamic, ensuring that it continues to drive regional trade and cooperation effectively. He stressed the significance of mutual collaboration in advancing the shared goals of trade, commerce, and tourism in the region.

In response, Finance Minister Senator Muhammad Aurangzeb assured the Secretary General of the Ministry's full support for various ECO initiatives aimed at advancing regional cooperation. The Minister also reaffirmed the Ministry's commitment to greater engagement with the organization, ensuring that there will be regular representation from the Ministry of Finance in future discussions and initiatives related to regional trade and connectivity.

The meeting concluded on a positive note, with both leaders reaffirming their commitment to further strengthening the ties between the ECO member countries and fostering a collaborative environment for shared growth and development.

The Economic Coordination Committee (ECC) of the Cabinet met today under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

The meeting was attended by several key federal ministers, including Minister for Power, Sardar Awais Ahmed Khan Leghari, Minister for Petroleum, Mr. Ali Parvez Malik, Minister for Commerce, Jam Kamal Khan, and Federal Minister for National Food Security & Research, Rana Tanveer Hussain. Senior officials from various ministries and divisions were also present.

During the meeting, the ECC reviewed and approved several Technical Supplementary Grants (TSGs) for ongoing projects and initiatives from different ministries and divisions. The committee emphasized that, with the fourth quarter of the fiscal year underway, it would closely monitor and prioritize the allocation of future TSGs to ensure efficient utilization of government resources.

Key Approvals from the ECC Meeting:

1. Rs 9 Billion TSG for Finance Division
The ECC approved a TSG of Rs 9 billion for the Finance Division to address grants, subsidies, and miscellaneous expenditures for the fiscal year 2024-25.

2. Rs 50 Million TSG for the National Commission for Human Rights
A TSG of Rs 50 million was approved for the National Commission for Human Rights, based on a proposal moved by the Ministry of Human Rights.

3. Rs 23.434 Billion TSG for Federal Directorate of Immunization (FDI)
The ECC approved a TSG amounting to Rs 23.434 billion (Rs 23.20 billion being the provincial share and Rs 622.36 million being the federal share) for the Federal Directorate of Immunization to support the immunization of over 8 million children under two years of age against 12 vaccine-preventable diseases. This initiative is part of Pakistan’s ongoing commitment to public health.

4. Rs 1.06 Billion TSG for the Transformation to National Forensic Agency Project
A TSG of Rs 1.06 billion was approved for the timely completion of the ‘Transformation to National Forensic Agency’ project, ensuring it is completed by June 30, 2025.

5. Rs 264.8 Million TSG for Government Building Maintenance
The ECC granted Rs 264.8 million in TSG for the maintenance and repair of government buildings, with funds allocated for buildings that have been shifted from the Pakistan Public Works Department (PAK-PWD) to the Capital Development Authority (CDA). The CDA has been directed to ensure proper and optimal utilization of these funds.

6. Rs 3.57 Billion TSG for Jinnah Medical Complex and Research Center Company
The ECC approved a TSG of Rs 3.57 billion to support the establishment of a 1,000-bed academic medical center, featuring centers of excellence, research, and education facilities, to be built by the Jinnah Medical Complex and Research Center Company in the capital.

7. Rs. 54.5 Billion TSG for the Danish Education Trust
The ECC considered and approved a proposal for a TSG of Rs 54.5 billion to the Ministry of Federal Education and Professional Training for the Danish Education Trust to provide high-quality higher
education to underprivireged students, ensuring academic excellence nationwide.

In conclusion, the ECC reiterated its commitment to advancing important public welfare projects, strengthening infrastructure, and supporting critical sectors including health, education, and forensic services. The committee expressed its focus on ensuring that these resources are utilized effectively for the benefit of the people of Pakistan.

In a groundbreaking move poised to reshape the global crypto landscape, Changpeng Zhao (CZ) — visionary founder of Binance and one of the most influential figures in Web3 — has officially been appointed as a Strategic Advisor to the Pakistan Crypto Council (PCC).

The announcement was made today during CZ’s meeting with the Pakistan Crypto Council. The meeting was chaired by the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and brought together key government stakeholders, including the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Governor of the State Bank of Pakistan, and the Federal Secretaries for Law and IT.

During his visit, CZ also held separate meetings with the Prime Minister and Deputy Prime Minister of Pakistan.

“This is a landmark moment for Pakistan,” said Senator Muhammad Aurangzeb, Finance Minister of Pakistan and Chairman PCC. “We are sending a clear message to the world: Pakistan is open for innovation. With CZ onboard, we are accelerating our vision to make Pakistan a regional powerhouse for Web3, digital finance, and blockchain-driven growth.”

“Pakistan is opening its doors to the future of finance,” said Bilal Bin Saqib, CEO of the Pakistan Crypto Council. “And who better to guide us on this journey than CZ — a pioneer who built the world’s largest crypto exchange and changed the way billions think about financial freedom.”

As an official Strategic Advisor to the Council, CZ will provide guidance on regulation, infrastructure, education, and adoption. He will work closely with the Government of Pakistan and the private sector to create a compliant, inclusive, and globally competitive crypto ecosystem.

“Pakistan is a country of 240 million people, over 60% of whom are under the age of 30. The potential here is limitless,” CZ remarked during the announcement.

The Pakistan Crypto Council — established under the Finance Division — is spearheading this digital transformation. CZ’s appointment signals a bold new era, where Pakistan joins the ranks of Singapore, Dubai, and Switzerland as a progressive, Web3-ready nation.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with the Deputy Prime Minister of the Russian Federation, Mr. Alexei Overchuk, on the sidelines of the Boao Forum for Asia (BFA) Conference today.

During the meeting, the Minister reaffirmed Pakistan's commitment to enhancing economic, trade, and investment ties with Russia. He emphasized the growing momentum in bilateral relations, especially in the fields of energy, trade, and industrial collaboration, recalling the significant progress made during the 9th session of the Pakistan-Russia Inter-Governmental Commission (IGC) in Moscow, co-chaired by Pakistan’s Minister for Energy, Mr. Awais Ahmed Leghari, and Russia's Minister of Energy, Mr. Sergei Tsivilev.

Discussions during the meeting also focused on strengthening energy cooperation, with Pakistan expressing interest in expanding the procurement of crude oil and investments in oil and gas exploration. The two dignitaries also delved into opportunities for collaboration in the hydropower sector, with Pakistan welcoming Russia's technical expertise and investment.

Additionally, the Minister acknowledged the significance of the Pakistan-Russia Freight Pilot Train Project, scheduled for launch on March 31, 2025, under the North-South Transport Corridor via Iran. Both sides discussed measures to ensure smooth operations, including customs facilitation and regulatory alignment.

Pakistan’s keen interest in establishing a new steel mill with Russian collaboration was also highlighted. The Minister stressed the importance of feasibility studies and cost assessments to move the project forward.

In closing, the Federal Minister reaffirmed Pakistan's commitment to strengthening its economic and trade relations with Russia and expressed optimism about expanding bilateral cooperation in key areas of mutual interest. The meeting concluded on a positive note, with both sides eager to achieve tangible progress in the near future.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has emphasized the urgent need for an inclusive approach to globalization, one that benefits all nations, particularly the developing economies.

He made this call while attending a high-level session titled ‘Inclusive Globalization That Benefits All – Pathways and Actions’ at the Boao Forum for Asia Annual Conference 2025, held in Boao, Hainan Province, China.

Highlighting the growing inequalities within the global economic system, the Minister stated that while globalization has lifted over one billion people out of poverty, it remains fundamentally unequal, disproportionately benefiting developed economies while marginalizing the Global South. The risks of rising protectionism, unilateralism, and trade wars are exacerbating global divisions, threatening to disrupt supply chains and weaken international cooperation. For globalization to survive, it must be rebalanced to allow fairer participation for all nations, particularly those currently disadvantaged by restrictive trade rules and limited financial access.

Senator Aurangzeb underscored that the time for rhetoric has passed, and decisive action is needed. Pakistan, like many developing nations, advocates for a more balanced model of globalization—one that promotes fair trade, sustainable growth, and equitable financial systems. This model must be multilateral, innovation-driven, and inclusive, to foster development and prosperity across all regions.

One of the key challenges facing inclusive globalization, according to the Minister, is the widening wealth and opportunity gap. Developed nations continue to gain from high-tech sectors, digital trade, and broad financial access, while developing nations are held back by high tariffs, restrictive investment policies, and limited infrastructure. In response, Pakistan has consistently called for greater regional connectivity, fairer market access, and stronger multilateral cooperation, citing initiatives like the China-Pakistan Economic Corridor (CPEC) and the Special Investment Facilitation Council (SIFC) as steps in the right direction.

The Minister also called for a global coalition among developing nations to collectively demand fairer trade rules and greater representation in international financial institutions. These alliances are necessary to combat the disproportionate tariffs and trade restrictions that hinder the integration of developing economies into global markets. He pointed out that Pakistan’s textile and agricultural sectors—key drivers of its economy—face significant challenges due to protectionist policies in developed countries and non-tariff barriers that limit their access to Western markets.

Addressing the issue of financial inequality, Senator Aurangzeb stressed the need for debt relief and financial justice through restructuring sovereign debt mechanisms to prevent cyclical debt crises, which are impeding the economic growth of many emerging economies, including Pakistan. He highlighted that global debt has soared past $100 trillion, with over 60% of low-income countries at risk of debt distress, diverting resources from critical social and economic investments. He called for reforms in international financial institutions to offer developing economies greater financial flexibility and sustainable debt relief mechanisms.

The Minister emphasized the transformative potential of technology in bridging global disparities. He called on governments and international bodies to establish global AI and fintech funds to support digital inclusion in developing economies. While Pakistan has initiated the Digital Pakistan program, there is a need for stronger international collaboration in artificial intelligence (AI), fintech, and e-commerce to empower small and medium enterprises (SMEs) and drive inclusive economic participation in the country.

Climate change, the Minister stressed, must be central to any discussion of globalization. Developing nations contribute less than 10% of global carbon emissions yet suffer disproportionately from the consequences of climate disasters. Pakistan, despite contributing less than 1% of global carbon emissions, is one of the world’s most climate-vulnerable countries. The devastating floods of 2022 inflicted $30 billion in damages and displaced 33 million people. Pakistan continues to advocate for urgent climate financing, green technology transfers, and fair global climate policies to support climate resilience in developing economies.

Senator Aurangzeb concluded his remarks by calling for a more sustainable approach to globalization. Developed nations, he urged, must fulfill their $100 billion annual climate finance commitments and prioritize renewable energy cooperation to help emerging markets transition to low-carbon economies. Furthermore, carbon-intensive trade restrictions that penalize export-dependent economies in the Global South must be reduced. He also called for reforms in the global financial architecture, including the enhancement of Special Drawing Rights (SDRs) allocations and the promotion of green bonds and blended finance models to attract private-sector investment in emerging markets.

The Minister reiterated that the future of globalization must be one of inclusivity, fairness, and shared prosperity. The time to act, he emphasized, is now.

The Economic Coordination Committee (ECC) of the Cabinet met today with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chairing it virtually from China where he is attending the Boao Forum for Asia 2025.

The meeting was attended by Minister for Petroleum Mr. Ali Parvez Malik, Minister for Commerce Jam Kamal Khan, Minister for Board of Investment, Qaiser Ahmed Sheikh, along with the Chairman of SECP, federal secretaries, and senior officials from relevant ministries and divisions.

The ECC took up a summary by the Petroleum Division regarding the Reko-Diq Project and changes in its overall development plan and related financial commitments and project finance considerations due to inflation and enhanced scope of the project concerning capacity, energy mix, alternative water supply options and updated processing plants and machinery.

The ECC noted the factors leading to the project escalations, and approved the proposals contained in the summary with the directions to the Ministries of Petroleum & Finance to continue close coordination with a view to ensuring timely implementation of all agreed actions. The ECC assured full support for the Reko-Diq Project, calling it a project of immense national importance.

The ECC also considered and approved a summary presented by the Ministry of Interprovincial Coordination for a technical supplementary grant amounting to Rs 200 million under the development grant of IPC Division for the construction of PSB Coaching Centre at Skardu.

The ECC, however, urged the Ministry of Interprovincial Coordination to ensure that after its construction, the training facility remains operational and serves the desired purpose in terms of providing sports facilities to local population and serving as a high-altitude training facility for athletes competing at the national and international level.

In a groundbreaking move for Pakistan’s sustainability-focused financial sector, Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has launched the country’s first-ever PKR-denominated Green Bond under the Parwaaz Green Action Bond initiative. The bond, which is also the first ever Green Bond to be listed on the Pakistan Stock Exchange (PSX), aims to mobilise capital for environmentally sustainable projects and strengthen Pakistan’s green investment ecosystem.

The PKR 1 billion bond includes investment commitments from leading financial institutions—including Bank Alfalah, Bank of Khyber, Allied Bank, Pak Brunei Investment Company Ltd., Pak China Investment Company Ltd., Pak Libya Holding Company Ltd., Pak Oman Investment Company, Saudi Pak Industrial & Agricultural Investment Company Ltd., and Al Falah Insurance. The initiative reflects strong investor confidence in Pakistan’s green finance sector.  

At the launch, Mr. Muhammad Aurangzeb, Federal Minister for Finance and Revenue, underscored its importance: “Pakistan’s economic resilience depends on our ability to embrace sustainability in finance. The launch of this Green Bond is a testament to our commitment to fostering an investment-friendly environment for climate initiatives. This initiative not only aligns with the transformation of Pakistan’s financial sector but also paves the way for attracting green investments at scale.”

The UK has played a key role in bringing today’s Bond to market, including through specialist expertise to help structure it. PFSL received technical assistance from the UK government’s Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) programme. Karandaaz Pakistan was also created with significant UK support. British High Commissioner, Jane Marriott CMG OBE, said: “This Green Bond is a brilliant example of how intelligent financial innovation can drive both private sector led economic growth and greater climate resilience. Pakistan needs $348 billion by 2030 to adapt and make the green transition, so the need to mobilise climate finance has never been more urgent. Congratulations to those who have helped to deliver today’s Bond, which is good for the economy and good for the planet.”

Karandaaz Pakistan has been at the forefront of mobilizing green finance. Syed Salim Raza, Chairperson of the Karandaaz Pakistan Board, reiterated Karandaaz’s long-term commitment to sustainability, stating, “Our vision for green finance is rooted in long-term economic resilience. This bond demonstrates that Pakistan can attract serious investment in sustainability-focused projects while ensuring that financial growth does not come at the cost of environmental degradation. The success of this initiative will pave the way for a more robust green financing ecosystem in the country.”

Speaking at the launch, Waqas ul Hasan, CEO of Karandaaz Pakistan, described the bond as “not just a milestone for Karandaaz and Parwaaz Financial Services but a defining moment for the entire financial sector of Pakistan. Karandaaz is proud to lead the way in mobilizing capital for green investments, ensuring financial instruments work for both economic progress and environmental sustainability. We will continue to strive for instruments which enable capital allocation to development outcomes of the country”

The bond builds upon PFSL’s existing track record in green financing. Mr. Javed Iqbal, CEO of PFSL, highlighted that “This bond is the result of years of strategic effort to create financial instruments that generate measurable environmental and economic impact. By directing capital into renewable energy and clean transportation, we are not only financing infrastructure but also laying the foundation for Pakistan’s green transition.”

About the Parwaaz Green Action Bond
The Parwaaz Green Action Bond, rated AA- by PACRA, is a secured, medium-term financial instrument designed to finance or refinance green projects in renewable energy, clean agriculture, and clean transportation. The bond’s framework aligns with the Green Bond Principles (GBP) of the International Capital Market Association (ICMA) and the SECP’s Green Bond Guidelines, with an independent review conducted by the Pakistan Environment Trust (PET). A Green Bond Committee at PFSL will ensure funds are allocated to eligible green projects and will manage the proceeds to guarantee compliance with global green standards.

About Karandaaz Pakistan
Karandaaz Pakistan is committed to investing for shared prosperity by strengthening the financial and digital ecosystem through investments, innovation, and strategic partnerships. With a focus on inclusive, green, and sustainability-driven growth, Karandaaz expands financial access, supports businesses, and drives digital transformation—creating opportunities that foster a more resilient and equitable economy. Supported by seed funding from the Gates Foundation and the UK Government, Karandaaz is shaping a future where economic opportunity are within reach for all.

About MOBILIST
MOBILIST provides investment capital and technical assistance to enable the listing of pioneering products that can mobilise institutional capital at scale to support sustainable development and the climate transition in emerging markets.

The inaugural meeting of the Pakistan Crypto Council (PCC) was held today under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

The meeting was attended by key figures, including the CEO of the PCC, Bilal Bin Saqib, the Governor of the State Bank of Pakistan, the Chairman of the Securities and Exchange Commission (SECP), and the Federal IT and Law Secretaries, all of whom are members of the PCC.

The meeting focused on Pakistan’s untapped potential in the crypto space, with CEO Bilal Bin Saqib presenting a comprehensive vision and mission for the Council. His presentation highlighted the current state of Pakistan's crypto landscape, shedding light on challenges and barriers to the widespread adoption of cryptocurrencies. A major area of discussion was the need for regulatory clarity to unlock the full potential of the sector.

CEO Saqib emphasized the importance of regulatory models and use cases, particularly in the region, that could be tailored to Pakistan's unique context. He also presented the concept of leveraging Pakistan’s surplus electricity for Bitcoin mining, potentially turning the country's liabilities into assets.

Senator Muhammad Aurangzeb praised the vision and underscored the critical role of the Council in shaping Pakistan’s future in the digital asset space. He emphasised that the Pakistan Crypto Council will serve as an umbrella platform, uniting all relevant stakeholders and regulatory bodies to work collaboratively toward a comprehensive, responsible, and forward-looking crypto regulatory framework.

“This is the beginning of a new digital chapter for our economy. We are committed to building a transparent, future-ready financial ecosystem that attracts investment, empowers our youth, and puts Pakistan on the global map as a leader in emerging technologies,” he said.

The Minister emphasized that while Pakistan could learn from global best practices, the country must ensure that its business and revenue models are firmly rooted in local realities. He also pointed out the need to build on the existing work done by various entities and groups, leveraging their knowledge and experience.

Council members, including the Governor of the State Bank of Pakistan, Chairman of SECP, and Federal IT and Law Secretaries, also contributed to the discussions, highlighting the need for a well-defined regulatory framework, legislation, and licensing regimes. They emphasized the importance of consumer protection, blockchain mining, and a national blockchain policy. The importance of sequencing the rollout, running pilot programs, and ensuring adherence to international obligations was also discussed.

The meeting concluded with a shared commitment to carefully charting a path forward, ensuring Pakistan can fully tap into the potential of blockchain and cryptocurrencies while safeguarding the country’s economic interests.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting today with Ms. Natalie Baker, Charge d’Affaires and Acting US Ambassador to Pakistan, who called on the Minister at the Finance Division.

The meeting focused on matters of mutual interest, including avenues for enhancing economic cooperation and increasing US investment in Pakistan’s priority sectors.

During the discussion, the Finance Minister briefed Ms. Baker on the government’s macroeconomic reform agenda, in line with Prime Minister Shehbaz Sharif’s vision for structural reforms and export-led economic growth. He highlighted key initiatives being undertaken to improve economic efficiency and ensure sustainable and inclusive growth, including privatization, tax reforms, energy sector restructuring, and rightsizing of the federal government.

Ms. Natalie Baker commended Pakistan’s economic progress and its commitment to implementing necessary but challenging structural reforms. She acknowledged the country’s resilience and the measures taken to strengthen the foundation for long-term economic stability. She reiterated the US Administration’s commitment to fostering a strong bilateral relationship with Pakistan, with a particular emphasis on deepening economic cooperation and expanding investment opportunities.

Both sides reaffirmed their commitment to further strengthening economic ties and exploring new areas of collaboration to advance shared economic goals.

The Economic Coordination Committee (ECC) of the Cabinet met today under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The meeting was attended by Minister for Power, Sardar Awais Ahmed Khan Leghari, Minister for Petroleum, Mr. Ali Parvez Malik, Federal Minister for Board of Investment, Qaiser Ahmed Sheikh, along with the Chairman of SECP, federal secretaries, and senior officials from relevant ministries and divisions.

During the meeting, the ECC considered and approved a summary from the Ministry of Information and Broadcasting, seeking a Technical Supplementary Grant (TSG) of Rs. 2 billion from its allocated budget of Rs. 5.6 billion. The approved grant will be used to meet the liabilities of payments for outstanding advertisement dues owed to media houses.

The ECC further approved a proposal from the Ministry of Defence for a TSG amounting to Rs. 430 million for the execution of SAP schemes in the province of Punjab during the current financial year.
The Committee also approved the allocation of Rs. 250 million as Government Paid-Up Capital for the operations of the Jinnah Medical Complex & Research Centre (JMC&RC) Company. This allocation will support the establishment of a state-of-the-art, 1,000-bed academic medical centre in Islamabad. However, the ECC directed the JMC&RC Company to provide a detailed breakdown of the expenditures and activities to be covered by the approved Rs. 250 million before seeking further allocations.

In addition, the ECC discussed a summary presented by the Finance Division regarding the phasing out of the State Bank of Pakistan’s long-term financing facility (LTFF) to Exim Bank. The ECC decided that the SBP’s LTFF portfolio of PKR 330 billion would be phased out to the Exim Bank, with an allocation of PKR 1.001 billion through a Technical Supplementary Grant to meet the LTFF subsidy requirement for the new portfolio for FY 2025.

Finally, the ECC approved a summary from the Finance Division for a Technical Supplementary Grant of Rs. 24.556 million (equivalent to USD 87,671.21 at an exchange rate of Rs. 280.1/USD) to Mrs. Lia Bomba of JAED Textile Pvt Ltd, Sydney, Australia, in compliance with the specific instructions of the Supreme Court of Pakistan dated 19th March 2025.

A meeting was held today between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and a delegation from the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), led by Mr. Atif Ikram, President FPCCI, Mr. S. M. Tanveer, Patron-in-Chief, and Senator Noman Wazir, Chief Executive of FF Steel, KPK.

The meeting aimed to share a comprehensive Charter of Economy prepared by FPCCI with the Finance Minister and his team. The FPCCI team emphasized that this Charter was developed to foster political consensus and intended to meet with all stakeholders, including political parties, to form an effective economic strategy that transcends political divides and addresses Pakistan’s economic challenges. Their goal is to free the country from its economic calamities by prioritizing the nation’s development and economic growth, particularly to meet the needs of the growing population, especially the youth, who form the core of Pakistan’s demographic structure.

Senator Noman Wazir Khattak provided a detailed presentation on the proposals and recommendations outlined in the Charter of Economy. The key recommendations included the reorganization of specialized civil services with the establishment of dedicated groups in critical sectors such as Energy, Finance, Industry, and Health to lead policy formulation and ensure informed decision-making. The Charter also called for embracing solar and wind energy, seen as the cheapest sources of power, and proposed keeping wheeling charges for the Competitive Trading Bilateral Contract Market (CTBCM) at a maximum of Rs 4 per KWh. The presentation also emphasized a greater focus on regional trade and development financial institutions, with proposals for at least 20% of lending directed toward long-term CAPEX and 10% toward startup CAPEX. A stable exchange rate was recommended to support exports and discourage imports that do not comply with the Pakistan Standards and Quality Control Authority (PSQCA). The Charter also stressed the importance of a uniform gas pricing structure for industries across the country to promote industrial growth.

Further recommendations included transferring ownership of State-Owned Enterprises (SOEs) to employees, allowing them to manage these enterprises or privatize them, and converting their pension funds into equity. The presentation proposed strategic reforms on various fronts, including debt management, trade partnerships, tax compliance, energy efficiency, and the exploitation of mineral resources. It also called for a progressive taxation model for agriculture, better governance structures, pension and welfare reforms, digitalization, and improvements to the bankruptcy laws in Pakistan.

Senator Muhammad Aurangzeb welcomed the FPCCI delegation and praised their efforts in preparing a comprehensive and timely Charter of Economy, noting that such initiatives are crucial at this juncture, even when political parties agree on a common set of economic goals. He reflected on his previous involvement in the preparation of a similar Charter of Economy by the Pakistan Business Council in 2020, highlighting the importance of uniting all stakeholders on a common platform to address the challenges of declining living standards and achieve sustainable economic growth. The Finance Minister reiterated that quick fixes would not suffice, and a steady, unified effort was required to drive Pakistan’s economic recovery.

In his response, the Finance Minister also briefed the delegation on the ongoing reforms in key sectors, including macroeconomic stability, taxation, energy, and rightsizing of the federal government. He reassured the delegation that the government was committed to resolving pressing issues, such as energy costs for industries, to foster industrialization and export-led growth, in line with the government’s economic vision. The members of the FPCCI delegation expressed their appreciation for the Finance Minister and his team’s efforts in improving Pakistan’s economic indicators and hoped that the government would continue addressing critical issues to support industrialization and economic growth in the country.

The meeting was attended by senior officers of the Ministry of Finance and Federal Board of Revenue (FBR). Amongst the businessmen who attended the meeting included Mr. Atif Ikram, President FPCCI; Senator Noman Wazir, Chief Executive, FF Steel, KPK; Mr. S. M. Tanveer, Patron-in-Chief, United Business Group (UBG); MNA Dr Mirza Ikhtiar Baig; Mr. Ahsan Bakhtawri, Former President Islamabad CCI; Mr. Momin Malik, Guard Group; Mr. Zafar Bakhtawri, Secretary General UBG; Mr. Zaki Aijaz, Vice President FPCCI; Mr. Tariq Mehmood, Chief Executive OTTO Petroleum; Mr. Nasir Qureshi, President Islamabad CCI; Mr. Sohail Altaf, Group Leader Rawalpindi CCI; Mr. Ashfaq Ahmed, Vice President FPCCI, Gilgit Baltistan; Mr. Tariq Jadoon, Vice President, FPCCI; Mr. Malik Sohail, Chairman Coordination; Mr. Adeel Rauf, Convener FPCCI; Mr. Riaz Arshad, Convener FPCCI; Ms. Quart Ul Ain, Vice President FPCCI; and Mr. Hamid Waleed, Economic Advisor to Patron-in-Chief UBG.

A key follow-up meeting was held today between the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and his team at the Finance Division, with the World Bank team on Pakistan's national growth and fiscal program as part of the 10-year Country Partnership Framework (CPF) with a $20 billion commitment, focusing on key development areas like health, education, climate resilience, and sustainable growth.

The meeting, which took place at the Ministry of Finance, was attended by senior officers from the Ministry of Finance and the Federal Board of Revenue. The primary focus of the meeting was a continued discussion on the World Bank’s investment financing for economic reforms. The World Bank team presented their ongoing work regarding the preparation of a comprehensive National Growth and Fiscal Program. This program covers a wide range of critical subjects related to economic and fiscal reforms, including strategies aimed at unlocking constraints to inclusive and sustainable growth, mobilizing revenues, improving expenditure quality, and enhancing efficiency and accountability in service delivery.

A major goal of these reforms is to create the necessary conditions for increased productive private investment while ensuring more public resources are allocated for inclusive development. Additionally, the World Bank briefed the Finance Minister on their ongoing data analysis of policy proposals and recommendations gathered from various chambers, trade bodies, and associations during the pre-budget consultations. This collaborative approach is aligned with the government’s early budget process, which was brought forward to January this year to ensure a robust and realistic revenue policy based on sound economic considerations.

During the meeting, Minister Aurangzeb emphasized the need for a comprehensive and integrated approach to fiscal, trade, and private sector reforms that spans both the federal and provincial levels. He highlighted the importance of designing reforms that are incentivized through outcome-based and performance-based indicators directly linked to human development and socio-economic growth.
The Finance Minister reiterated that a nationally coordinated approach, as exemplified by the National Fiscal Pact, is crucial to ensuring macroeconomic stability. He stressed that this unified approach would be the cornerstone for achieving the country’s aspirations for inclusive and sustainable economic growth, ensuring the well-being of all citizens.

The meeting concluded with a shared commitment to continued collaboration between the Ministry of Finance, the World Bank, and all relevant stakeholders, in order to advance the reform agenda and drive positive change for the future of Pakistan’s economy.

Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, today held a meeting with Dr. Riina Kionka, Ambassador of the European Union to Pakistan, who called on the Minister at the Finance Division. The meeting focused on a range of matters of mutual interest, particularly on strengthening business and investment ties between the European Union (EU) and Pakistan.

During the meeting, Senator Aurangzeb and Ambassador Kionka discussed opportunities for European businesses in Pakistan, emphasizing the need to create an enabling investment climate to harness the growing appetite for expansion. Dr. Kionka shared that the EU had already mapped over 300 European companies operating in Pakistan, with the belief that many more are present.

Dr. Kionka extended an invitation to Senator Aurangzeb to attend a business and investment forum, which the EU Mission in Pakistan is planning to host in Islamabad in mid-May 2025. The forum aims to foster collaboration and discuss how Pakistan can continue to attract European business investment. She emphasized that European companies were increasingly viewing Pakistan as a hub for potential business opportunities, especially in light of the upcoming forum.

Senator Aurangzeb thanked Dr. Kionka for taking the initiative to host the forum and assured her of his full support. He expressed his intention to attend and speak at the event in person, underscoring the government's commitment to supporting EU businesses in Pakistan and facilitating their operations, including ensuring the timely repatriation of dividends and profits.

The Minister also welcomed the idea of creating a proactive and unified business platform for European companies, noting his recent positive engagement with a group of French and Dutch companies operating in Pakistan.

Furthermore, Senator Aurangzeb expressed appreciation for the EU’s support for Pakistan, particularly the importance of the Generalized Scheme of Preferences Plus (GSP Plus) facility. He highlighted that GSP Plus has been a critical enabler of Pakistan’s efforts to drive export-led growth.

The Minister also emphasized the need for a more proactive approach in reaching out to European capitals for constructive engagement on key issues, including the continuation of the GSP Plus facility, which is vital for Pakistan’s trade relations with the EU in the coming years.

In closing, both leaders reaffirmed their shared commitment to enhancing the economic and trade ties between Pakistan and the European Union, and to creating a thriving and mutually beneficial business environment for both sides.

The Economic Coordination Committee (ECC) of the Cabinet, under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, met today and approved a set of amendments to the existing net-metering regulations aimed at reducing the growing financial burden on grid consumers.

The decision comes in light of a significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers.

As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs 10 per unit. Furthermore, the committee approved the proposal, subject to the ratification of Cabinet, to allow the National Electric Power Regulatory Authority (NEPRA) to revise this buyback rate periodically, ensuring that the framework remains flexible and aligned with evolving market conditions.

It was clarified, however, that the revised framework will not apply to existing net-metered consumers who have a valid license, concurrence, or agreement under the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015. Any such agreements will remain effective until the expiration of the license or agreement, whichever occurs first. This ensures that the rights and obligations of these consumers, including agreed-upon rates, will continue as per the existing terms.

Additionally, the ECC also approved an update to the settlement mechanism. Under the new structure, imported and exported units will be treated separately for billing purposes. The exported units will be purchased at the revised buyback rate of Rs 10 per unit, while the imported units will be billed at the applicable peak/off-peak rates, inclusive of taxes and surcharges, during the monthly billing cycle.

The ECC also authorized the Power Division to issue proposed guidelines, subject to Cabinet's ratification, to NEPRA for incorporation into the applicable regulatory framework, ensuring clarity and consistency in the implementation of these amendments.The decision follows extensive discussions on the growing impact of solar net-metering on the national power grid.

The Power Division highlighted the pressing need for regulatory adjustments, citing a record decline in solar panel prices that has led to a sharp increase in the number of solar net-metering consumers. As of December 2024, solar net-metering consumers had transferred a burden of Rs 159 billion to grid consumers, a figure expected to rise to Rs 4,240 billion by 2034 without timely amendments.

The ECC was informed that the number of solar net-metering consumers surged significantly, reaching 283,000 by December 2024, up from 226,440 in October 2024. The total installed capacity also grew from 321 MW in 2021 to 4,124 MW by December 2024, underscoring the rapid expansion of the net-metering sector. However, the increase in solar net-metering consumers has contributed to a rising cost of electricity for grid consumers, undermining the government's efforts to reduce power tariffs.

The ECC also discussed the financial implications of the growing number of solar net-metering consumers, especially as they avoid paying the fixed charge component of the tariff, including capacity charges and the fixed expenditures of power distribution and transmission entities. This has transferred a disproportionate financial burden onto grid consumers, contributing to higher electricity tariffs and undermining the sustainability of the energy sector.

The committee also noted that 80% of solar net-metering consumers are concentrated in nine major cities, with a significant proportion located in affluent areas. This geographical concentration further highlights the need for regulatory reforms to ensure fairness and balance in the energy distribution system.

The amendments approved by the ECC represent a critical step toward ensuring the sustainability of the power sector while protecting the interests of all consumers, particularly those who rely on the grid for electricity.

Meanwhile, the ECC was also given a detailed briefing by the Economic Advisor of the Finance Division on inflation trends in 2025, highlighting a downward trajectory in CPI, food inflation, and SPI. The committee was also informed of a week-on-week decrease in essential commodity prices. The presentation attributed the decline to fiscal discipline, improved supply chains, and targeted subsidies. The Chair appreciated these efforts and stressed the need for continued vigilance to maintain price stability.

The ECC further discussed a summary submitted by Ministry of Maritime Affairs regarding Export of Potassium Sulphate Fertiliser from Gwadar Port. The ECC approved an exemption for M/s Agven Private Limited, operating in the Gwadar North Free Zone, to export up to 10,000 tons annually or 50% of actual production, whichever is lower, until December 31, 2025. The decision supports the development of Gwadar Free Zone while ensuring regulatory oversight through biannual shipment limits and data monitoring mechanisms.

The ECC also deliberated upon a summary from the Ministry of Interior and Narcotics Control regarding the disposal of gold case/reward money under the Customs Reward Rules, 2012. The committee directed the Ministry to justify the delay in processing the case and obtain the legal opinion of the Ministry of Law and Justice before resubmitting the summary.

Additionally, the ECC approved multiple Technical Supplementary Grants (TSGs) for the current fiscal year, including:
1. Rs. 250 million for the Ministry of Federal Education and Professional Training to support ICT-based educational initiatives, including smart classrooms, procurement of Chrome books, technology parks, and high-impact training centers.
2. Rs. 220 million for the Ministry of Industries & Production to enhance SME development, focusing on bankability, subcontracting, and international consultancy engagement.
3. Rs. 36.099 million for the Ministry of Interior and Narcotics Control to procure spare parts for helicopter maintenance by HQs Pakistan Rangers (Sindh).
4. Rs. 15.4 million for the Ministry of Interior and Narcotics Control for helicopter maintenance by HQs Frontier Corps Balochistan (North), Quetta.
5. Rs. 670 million for the Sustainable Development Goals Achievement Programme (SAP), reallocated from the Cabinet Division to the Ministry of Interior for further distribution to the ICT Administration.

The meeting was attended by Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Maritime Affairs Mr. Qaiser Ahmed Sheikh, Minister for Petroleum Mr. Ali Parvez Malik, along with federal secretaries and senior officials from relevant ministries and divisions.

FAdvisor to Finance Minister Khurram Schehzad emphasized the vital role of private sector investors in Pakistan's economic uplift, speaking at an Iftar-dinner event organized by PARCO Gunvor Limited.

Schehzad noted that Pakistan has achieved economic stability, with all indicators trending positively. He assured that the government is committed to facilitating investments, promoting ease of doing business, and supporting sustainable growth through structural reforms.

The government values the role of multinational companies in Pakistan's development and is committed to supporting private sector investors in driving economic growth and development.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held today an important meeting at the Finance Division with Mr. Mohammed Yahya, the United Nations Resident Coordinator, who was accompanied by Mr. Abdullah Fadil, UNICEF Representative.

The meeting provided a platform for discussions on key issues including debt management, debt restructuring, climate financing, sustainable development goals (SDGs), and Pakistan's transition to green energy. Ms. Afke Bootsman, Head of UN Resident Coordinator Office and Dr. Luay Shabaneh, UNFPA Representative were also present along with senior officers from the Finance Division.

During the meeting, the Minister emphasized that Pakistan faces two major existential challenges: climate change and population growth. He stated that no amount of economic stability and growth could be sustained without addressing these two critical issues. The Minister highlighted the importance of the technical support from development partners in designing and implementing bankable and investable projects that would be properly monitored and reported according to international standards.

The Minister also outlined Pakistan's ongoing commitment to its partnership with the World Bank, particularly focusing on the two key areas of population management and learning poverty, which are part of the 10-year Country Partnership Framework signed between Pakistan and the World Bank. He reiterated Pakistan’s determination to address these issues effectively with the necessary technical and financial support.

Furthermore, Senator Aurangzeb provided an update on the country's economic outlook, pointing to stability and improvements in several key economic indicators. He reaffirmed the government's focus on an export- and productivity-led growth model, carefully managed to avoid the boom-and-bust cycles of the past. The Minister stressed that the private sector must play a central role in driving inclusive, durable, and sustainable growth in the long term.

The meeting also explored avenues for enhanced climate financing and the scaling up of green energy initiatives to help Pakistan transition to a more sustainable energy future. Additionally, discussions were held on how to equip Pakistan's youth with the necessary entrepreneurial skills to contribute to the economy's long-term growth.

Senator Aurangzeb concluded by highlighting the importance of technical and financial assistance from the international community to help Pakistan overcome its challenges. The Minister reaffirmed Pakistan’s commitment to working with its development partners, including the United Nations, to achieve the SDGs and build a resilient, sustainable future for the country.

A meeting was held today at the Finance Division between Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and Governor Punjab, Sardar Saleem Haider Khan. The two leaders discussed matters of mutual interest, including economic development, challenges, and opportunities for growth.

Governor Punjab, Sardar Saleem Haider Khan, commended the Finance Minister and his team for their efforts in leading the country through a period of economic challenges. He noted the significant improvement in Pakistan’s economy despite the heavy odds the nation faced about a year ago. The Finance Minister acknowledged the crucial role of political leadership, particularly that of Prime Minister Shehbaz Sharif, whose vision and guidance played a pivotal role in stabilizing the economy and setting it on a sustainable growth path.

Additionally, the Finance Minister expressed gratitude for the support extended by President Asif Ali Zardari, particularly in matters related to economic management, the federation, and addressing national economic concerns.

Senator Aurangzeb also lauded Governor Punjab for his active engagement with the business community and local chambers. He emphasized that a strong foundation had been established for advancing the country’s economic goals, with a key role to be played by the private sector, particularly businesses, in driving the economy forward and ensuring robust long-term growth.

During the meeting, both leaders agreed on the importance of the agriculture sector as a critical pillar of future economic growth. They acknowledged that agriculture has the potential to serve as the lynchpin in the country’s economic development and must be prioritized to unlock its full capacity.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has reiterated the government's unwavering commitment to resolving critical issues related to taxation, energy, and financing, as part of its efforts to ensure the long-term viability and future growth of Pakistan’s industrial sector.

He made this statement during a meeting held today at the Finance Division with the leadership of the All Pakistan Textile Mills Association (APTMA). The meeting was attended by senior officials, including the Chairman of the Federal Board of Revenue (FBR), the Secretary of the Commerce Division, and other senior officers from the Finance Division and FBR.

Senator Muhammad Aurangzeb and his team welcomed the APTMA office-bearers and expressed the government's strong commitment to providing all possible support to the textile sector.

The Finance Minister assured the delegation that the government recognizes the critical role of the textile industry in Pakistan’s economy and remains dedicated to addressing its concerns.

He emphasized that addressing the core challenges faced by the industry is key to creating a conducive environment for industrial development, fostering economic stability, and supporting the nation’s overall growth trajectory.

Earlier, the APTMA delegation, led by Chairman Kamran Arshad, provided a detailed presentation on several pressing issues facing the textile sector related to energy, taxation and financing. The presentation also touched on various recommendations and proposals for the long-term viability and growth of the sector.

The Finance Minister assured the APTMA leadership that the government would give a thorough and thoughtful analysis of their recommendations, incorporating viable suggestions into the federal budget. He reiterated the importance of the consultative process and emphasized that any anomalies in the current framework would be addressed.

The APTMA delegation expressed their appreciation for the expedited disbursement of tax refunds and requested further support for the clearance of outstanding dues. The Finance Minister reaffirmed that the government values this consultative approach and would continue to engage with key sectors to ensure their concerns are addressed effectively in the upcoming budget.

The Government of Pakistan has appointed Mr. Bilal Bin Saqib MBE as the Chief Advisor to the Finance Minister on the Pakistan Crypto Council to reaffirm Pakistan’s commitment to embracing technological advancement while ensuring sound policy measures that support the national economy, digital transformation, and a secure, transparent financial system for all.

Bilal Bin Saqib, recognized by Forbes, is a Web3 investor, strategic advisor, and thought leader in the blockchain space. Mr. Saqib was included by Forbes in their 30 under 30 list and has been acknowledged by King Charles III, the late Queen Elizabeth II, and the Mayor of London for his efforts for the community. He was also the recipient of the 1632nd Points of Light Award, awarded by the British Prime Minister to recognize change makers in the country. He received his MBE (Member of the British Empire) in 2023 for contributions to the National Health Service in the UK.

In this pivotal role as the Chief Advisor to the Finance Minister on the Pakistan Crypto Council, Mr. Saqib will lend his great knowledge and experience to Pakistan’s efforts to integrate cryptocurrency and blockchain technologies into its financial ecosystem while ensuring the development of a robust regulatory framework for digital assets in alignment with global best practices. Additionally, he will advise the Finance Ministry on exploring the use of artificial intelligence (AI) to enhance government efficiency, optimize decision-making processes, and drive innovation in public sector operations.

Mr. Saqib’s appointment marks a significant step forward in Pakistan’s commitment to embracing the transformative potential of digital currencies, ensuring financial security, mitigating risks, and effectively assessing the impact of cryptocurrencies on Pakistan’s economy.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb welcomed the appointment of Mr. Bilal Bin Saqib and the crucial role his vast expertise and innovative vision was likely to play in guiding Pakistan's position in the rapidly evolving digital economy. “Mr. Saqib’s appointment underscores our commitment to embracing emerging technologies while ensuring a secure and transparent financial system. We are confident that his leadership will guide the development of a sound and effective regulatory framework, fostering innovation and sustainable growth in Pakistan’s crypto sector,” he said in a statement.

Commenting on his appointment, Mr. Saqib stated, "Cryptocurrency and blockchain technology hold immense potential for Pakistan, particularly for the youth, who are the driving force behind our nation’s digital future. With the right strategies and regulatory framework, we can empower our country's youth, foster economic growth, and establish Pakistan as a leader in the space.”

His appointment is a critical achievement in Pakistan’s efforts to become a regional leader in the cryptocurrency space and ensure that the country is prepared to handle the regulatory, economic, and security challenges posed by this emerging sector.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with a high-level delegation from Hutchison Ports, led by Mr. Andy Tsoi, Managing Director, Middle East & Africa Division. The delegation included Mr. Changsu Kim, CEO, South Asia Pakistan Terminal, Mr. Navaid Qureshi, CEO, Karachi International Container Terminal, and Mr. Taimur Khan Afridi, Head of Government Relations, Hutchison Ports Pakistan.

The delegation briefed the Minister on Hutchison Ports’ 25-year presence in Pakistan, where they have been operating two key terminals—HPKICT and HPSAPT. Over this period, the company has contributed more than PKR 225 billion in government revenues and has provided employment to a workforce of 5,000 individuals.

During the meeting, Hutchison Ports presented their upcoming investment plan of USD 1 billion, aimed at upgrading their existing terminals to enhance operational efficiency, logistics connectivity, and automation. The investment includes infrastructure development, road improvements to facilitate efficient cargo movement, modernization of HPKICT into a cutting-edge automated terminal, and the development of a 52-hectare logistics park to enhance trade connectivity. Additionally, automation upgrades will include remote quay cranes, automated RTGs, electric trucks, and digitalized gate operations, alongside training programs for maritime professionals in port operations, management, and AI applications.

The delegation highlighted that their investment is expected to generate at least USD 4 billion in revenue over the next 25 years through royalty, rent, and tax contributions.

The Finance Minister appreciated Hutchison Ports’ commitment to Pakistan’s maritime sector and acknowledged their significant role in boosting trade and economic activity. He assured them that the government remains committed to fostering a business-friendly environment to attract foreign investment. He reaffirmed the government’s support for strategic investments that contribute to Pakistan’s economic growth and infrastructure development.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with a delegation of the Mutual Funds Association of Pakistan (MUFAP) today. The meeting was attended by the Chairman of the Securities and Exchange Commission of Pakistan (SECP) and senior officials from the Finance and Revenue Divisions. The MUFAP delegation was led by Mr. Aftab Diwan, Independent Director of MUFAP.

During the meeting, the delegation presented a comprehensive overview of Pakistan’s mutual fund industry and its role in promoting savings, investments, and capital market development. They highlighted that mutual funds play a critical role in channeling savings into productive investments, supporting economic growth, and expanding financial inclusion. The delegation also pointed out that Pakistan’s gross savings rate, currently at 13% of GDP, remains significantly lower than regional peers such as India, which stands at 30%.

The discussion covered key policy proposals to strengthen the financial sector. The delegation emphasized the need to develop Infrastructure Funds, allowing private sector participation in essential infrastructure projects. They also advocated for Contributory Pension Scheme Reforms, highlighting the importance of expanding structured retirement savings at the federal level. Additionally, they proposed policy measures to enhance market liquidity for Government Ijarah Sukuks (GIS) by improving institutional participation and introducing open market operations.

To encourage retail investor participation, MUFAP recommended reinstating tax credits for mutual fund investments to provide incentives for long-term savings. They also proposed the establishment of a Pakistan Higher Education Savings Fund, modeled after successful global education savings plans, to help families plan for their children’s education.

Finance Minister Senator Muhammad Aurangzeb appreciated MUFAP’s insights and reaffirmed the government’s commitment to strengthening Pakistan’s investment landscape. He directed SECP and relevant authorities to evaluate the proposed reforms and ensure the development of a more robust and inclusive financial ecosystem.

The meeting concluded with a shared understanding that a well-regulated and growing mutual fund industry would not only contribute to economic stability but also offer secure and profitable investment opportunities for the public, promoting financial security and sustainable development.

A delegation of Jefferies Investors, led by Ms. Alia Moubayed from Jefferies, called on the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, in Islamabad today. The delegation included Mr. Vasil Nikolov from HBK Investment Management, Mr. Khaled Sellami from Barings, Mr. Xin Xu from Ashmore, Mr. Salman Ahmed from Fidelity, Mr. Khurram Sheikh from Jefferies, and Mr. 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.

Senator Muhammad Aurangzeb 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.

The Minister 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 Finance 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.

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a high-level meeting on digital assets today. The meeting was attended by foreign delegates, including President Trump’s Advisors for Digital Assets. Minister of State for IT & Telecom, Ms. Shaza Fatima Khawaja, Governor State Bank, Secretary Finance, and Secretary IT & Telecom were also present.

Participants discussed the global evolution of cryptocurrency, its increasing adoption, and the regulatory frameworks being implemented internationally, in line with U.S. government policies. The deliberations focused on financial security, risk mitigation, and the potential impact of digital assets on Pakistan’s economy.

Senator Muhammad Aurangzeb emphasized the importance of a well-regulated digital asset framework, aligning Pakistan with international best practices and complying with Financial Action Task Force (FATF) guidelines. He highlighted the government’s commitment to exploring digital assets and integrating blockchain technology as part of its broader strategy to modernize the financial sector.

Discussions also included the tokenization of key infrastructure and state-owned enterprises (SOEs) assets, allowing for increased liquidity, broader investor participation, and greater efficiency in capital markets. It was noted that various stakeholders, including foreign and domestic investors, have already developed product-ready digital asset solutions that could be explored within a regulatory sandbox.

Pakistan currently has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees. The Finance Minister reaffirmed his commitment to regulating and encouraging this industry by adopting appropriate frameworks, laws, and incentives to ensure transparency and facilitate digital business growth.

The Finance Minister directed relevant stakeholders to formulate a comprehensive framework that ensures security, transparency, regulatory compliance, and economic viability while safeguarding against financial crimes and illicit activities. He also stressed the need for a balanced approach—one that encourages innovation and investment in digital assets while maintaining strict regulatory oversight in line with international standards.

To enhance this initiative, the government will consider establishing a National Crypto Council, which will serve as a dedicated advisory body comprising key government representatives, regulatory authorities, and industry experts. This Crypto Council will oversee policy development, address regulatory challenges, and ensure that Pakistan’s digital asset ecosystem evolves in a secure, compliant, and sustainable manner. The Council will also collaborate with friendly countries to develop standardized frameworks for international digital economic engagement.

The meeting concluded with a consensus on adopting a cautious yet forward-looking approach, ensuring that future developments in the digital asset space align with national interests, FATF guidelines, and global financial standards.

Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting with a delegation from the Multilateral Investment Guarantee Agency (MIGA) at the Finance Division today. The delegation was led by Mr. Dilawar Bajauri, Senior Investment Guarantee Officer – Financial Institutions and Capital Markets / Lead for FIG Products / Business in the Middle East, Turkey, and Pakistan, along with Mr. Jae Kwon, Senior Underwriter – Head of South Asia Business Development.

The delegation highlighted MIGA’s role in offering short-term credit guarantees, which complement the efforts of the International Finance Corporation (IFC) in promoting private sector development. They underscored their organization’s commitment to supporting financial institutions and capital markets in Pakistan and expressed confidence in the country’s economic potential - Pakistan being MIGA’s first destination in Asia.

Senator Muhammad Aurangzeb reiterated Pakistan’s commitment to fostering a conducive investment climate and expressed hope for continued collaboration with MIGA in advancing the country’s economic and financial sector development.

The meeting concluded with both sides agreeing to maintain close coordination.

The Economic Coordination Committee (ECC) of the Cabinet met today to discuss a summary submitted by Petroleum Division for an upward revision of the indigenous gas tariff for industry (captive power) as well as non-protected domestic slabs.

The meeting was chaired by Federal Minister for Finance Senator Muhammad Aurangzeb with Federal Minister for Petroleum Mr. Musadik Masood Malik, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister of State for Finance and Revenue Mr. Ali Parvez Malik, Chairman OGRA, Chairman SECP, Federal Secretaries, and senior officers from the relevant divisions in attendance.

The ECC following a through discussion decided to approve upward revision in gas tariff for captive power plants from Rs 3000 per mmbtu to Rs 3500 per mmbtu to ensure required revenue for the gas sector during FY 2024-25, but it did not agree to increase the tariff for domestic consumers with a view to protecting the domestic consumers from additional burden. The ECC, however, instructed the Petroleum Division to take necessary measures for the imposition of a grid transition levy on the captive power plants to enhance the energy sector efficiency.

A meeting of the Cabinet Committee on Rightsizing of the Federal Government was held today, chaired virtually by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, from Davos, Switzerland.

The meeting featured detailed presentations from both the Revenue Division and the Ministry of Poverty Alleviation & Social Safety regarding their mandates, organizational structures, budget allocations, expenditures, and the impact of their work on public services.

The presentation by the Revenue Division highlighted key aspects of the Federal Board of Revenue (FBR) transformation plan, focusing on initiatives designed to modernize the Customs Department. The transformation plan, approved by the Prime Minister on September 19, 2024, aims to improve operations, including automation and technology integration, such as the Faceless Customs Assessment and Examination.

The Rightsizing Committee was briefed on steps taken by the Revenue Division to streamline operations, including the abolition of 158 posts (BS-18 and below) and the designation of 27 posts (BS-16 to 20) as “dying posts” as part of the Cabinet decision on August 27, 2024. In response to challenges faced by the FBR, the Revenue Division proposed a one-time dispensation from the requirement to abolish 60% of vacant posts within its field formations.

Senator Aurangzeb acknowledged the challenges the FBR had faced due to under-investment over the years and reiterated the importance of embracing technological advancements, such as the implementation of automation systems, to improve efficiency and service delivery.

The Ministry of Poverty Alleviation & Social Safety also presented its work, which spans across multiple departments with overlapping functions. The Minister remarked that while much progress had been made, the fragmented approach to various departmental verticals had hindered scaling up the impact on public policy outcomes and public service delivery. The Chair commended the presentation and emphasized the need for a more integrated approach.

The Minister tasked the sub-committee of the Rightsizing Committee with conducting a thorough review of both the Revenue Division and the Ministry of Poverty Alleviation & Social Safety to better assess the structure, functions, and efficiencies of these federal government organs. The sub-committee will engage with both entities to identify opportunities for improved public service outcomes in line with the committee’s mandate.

The meeting concluded with a clear directive for a follow-up examination, with a focus on rightsizing measures that ensure effectiveness, better service delivery, and sustainable public policies.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held back-to-back meetings with Mr. Mohammed bin Abdullah Al-Jadaan, Minister of Finance of the Kingdom of Saudi Arabia, as well as with Mr. Ali Ahmed Al Kuwari, Minister of Finance of Qatar on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland.

During the meeting with Mr. Mohammed bin Abdullah Al-Jadaan, Finance Minister Aurangzeb highlighted the key reform measures undertaken by the Government of Pakistan to promote economic stability and sustainable growth. He briefed his Saudi counterpart on the structural reforms, fiscal discipline, and regulatory improvements that have contributed to an improved investment climate in Pakistan.

Both Ministers exchanged views on regional economic development and discussed potential avenues for deepening bilateral investment and financial cooperation. They emphasized the long-standing brotherly relations between Pakistan and Saudi Arabia and explored ways to enhance collaboration in sectors of mutual interest, including trade, infrastructure, and energy.

The meeting concluded on a positive note, with both sides reaffirming their commitment to further strengthening the economic and financial ties between the two countries for shared prosperity.

Meanwhile, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb also met Mr. Ali Ahmed Al Kuwari, Minister of Finance of Qatar to discuss avenues for enhancing economic and investment cooperation between the two brotherly nations.

During the meeting, Finance Minister Senator Muhammad Aurangzeb briefed his Qatari counterpart on Pakistan’s recent economic progress. He highlighted Pakistan's improved international financial ratings, which reflect the country’s robust efforts towards fiscal reforms, macroeconomic stability, and sustainable development. The Finance Minister emphasized that these improvements are positioning Pakistan as an attractive destination for foreign investment, especially from key partner nations like Qatar.

Both ministers underscored the deep-rooted ties between Pakistan and Qatar, reaffirming their commitment to further enhancing economic cooperation in mutually beneficial sectors. They explored various avenues for expanding bilateral investment, trade, and financial collaboration in sectors such as energy, infrastructure development, and technology.

The meeting concluded with a shared vision to strengthen the partnership between the two brotherly nations, aiming to elevate the level of economic engagement for the benefit of both countries.

In an exclusive article published as part of World Economic Forum Annual Meeting, Minister of Finance and Revenue Senator Muhammad Aurangzeb has invited the global stakeholders “to support Pakistan’s journey by investing in priority sectors such as agriculture, IT, renewable energy and pharma”.

In the article published on the WEF website on https://www.weforum.org/stories/2025/01/pakistan-economic-revival-sustainable-and-inclusive-growth/, the Minister highlights the transformative journey embarked upon by Pakistan in recent years towards economic stabilization and growth. “Confronted with formidable challenges, we implemented decisive reforms to build a robust foundation for sustainable and inclusive development. Today, the results of these efforts are becoming evident, with the economy demonstrating resilience and renewed potential,” he says.

Further text of the article reads

A series of necessary reforms
When I assumed office as Finance Minister in 2024, Pakistan faced severe fiscal and monetary pressures. Inflation had surged to 38%, straining households and eroding purchasing power. Foreign exchange reserves had dropped dangerously low, barely covering two weeks of essential imports like food and fuel. Industrial output had contracted by 10.3%, and GDP growth had plummeted to 0.2%. The compounded effects of COVID-19 and devastating floods causing over $30 billion in damages further tested our resilience.

Recognizing the gravity of the situation, we implemented a series of necessary reforms. These included stabilizing the exchange rate, tightening fiscal policies, and curbing inflation through targeted monetary interventions. With support from the IMF’s Extended Fund Facility (EFF) worth $7 billion, we initiated structural improvements in critical sectors such as energy and taxation. Central to this effort was “Uraan Pakistan”, an economic transformation plan launched in 2024. This initiative aims to achieve sustainable, export-led 6% GDP growth by 2028 through public-private partnerships, enhanced export competitiveness and optimized public finances. Priority sectors include agriculture, energy, textiles, pharmaceuticals and IT.

A pivotal component of Uraan Pakistan is our collaboration with the World Bank on a $20 billion initiative targeting health, education, poverty alleviation, investment and climate resilience. This transformative partnership addresses critical challenges such as child malnutrition, educational outcomes and clean energy adoption. By integrating sustainability into our development framework, we are contributing to global efforts to achieve the United Nations Sustainable Development Goals (SDGs).

In July 2024, we introduced a reform-oriented budget with an ambitious goal of raising Rs13 trillion in revenue – a 40% increase from the previous year. These reforms focused on broadening the tax base by targeting under-taxed sectors like agriculture, real estate and trade, while leveraging technology to enhance compliance and transparency. Modernizing the Federal Board of Revenue (FBR) has been instrumental in streamlining tax administration.

Path to recovery
Today, Pakistan’s economy is on a path to recovery. Inflation has dropped to 4.1%, and foreign exchange reserves now provide over two months of import coverage. Goods exports have risen by 7.1%, and the IT sector has grown by an impressive 28% year-on-year. Pakistan’s global default risk has dropped by 93%, signaling renewed faith in the country’s fiscal stability. Local and foreign investors, including global giants like Aramco, BYD and Samsung, are contributing to this economic revival, reflecting Pakistan’s potential as a lucrative investment hub.

The current account has been in surplus for three consecutive months, and investor confidence is at a two-year high. Foreign direct investment (FDI) has grown by 20% in the first half of fiscal year 2025, reflecting renewed trust in Pakistan’s economic trajectory. Initiatives like the Roshan Digital Account have attracted over $9 billion in inflows, while remittances have reached a record $35 billion this year. Additionally, Pakistan’s equity market delivered an 87% return in dollar terms, underscoring strong investor sentiment.

Internationally, Pakistan’s progress has been acknowledged, with all three top global rating agencies upgrading the country’s sovereign ratings. Moody’s revised Pakistan’s economic outlook to ‘Positive’ in September 2024, recognizing the impact of our policy measure.

Challenges remain
Despite significant achievements, challenges remain. To break free from cycles of external assistance, Pakistan is addressing structural inefficiencies in revenue collection, energy, state-owned enterprises (SOEs) and privatization. Rightsizing the federal government, reforming SOEs, and fostering export-led growth will strengthen internal revenue streams and reduce reliance on international funding programmes.

Global stakeholders are invited to support Pakistan’s journey by investing in priority sectors such as agriculture, IT, renewable energy, mining and minerals, textiles and apparels, pharmaceuticals, while capitalizing on Special Economic Zones (SEZs). Pakistan’s innovative approaches in taxation and economic stabilization offer valuable lessons for other developing economies. Furthermore, partnerships in climate resilience and sustainable development are crucial for advancing shared global goals.

The cornerstone of Pakistan’s economic transformation is political will and visionary leadership. This journey is not just about overcoming challenges but about harnessing resilience, determination and collective effort. With a remarkable workforce, abundant natural resources, and immense production potential, Pakistan is poised to soar to new heights – contributing to regional stability and global economic progress. This is Pakistan, as I see it.

In an exclusive article published as part of World Economic Forum Annual Meeting, Minister of Finance and Revenue Senator Muhammad Aurangzeb has invited the global stakeholders “to support Pakistan’s journey by investing in priority sectors such as agriculture, IT, renewable energy and pharma”.

In the article published on the WEF website on https://www.weforum.org/stories/2025/01/pakistan-economic-revival-sustainable-and-inclusive-growth/, the Minister highlights the transformative journey embarked upon by Pakistan in recent years towards economic stabilization and growth. “Confronted with formidable challenges, we implemented decisive reforms to build a robust foundation for sustainable and inclusive development. Today, the results of these efforts are becoming evident, with the economy demonstrating resilience and renewed potential,” he says.

Further text of the article reads

A series of necessary reforms
When I assumed office as Finance Minister in 2024, Pakistan faced severe fiscal and monetary pressures. Inflation had surged to 38%, straining households and eroding purchasing power. Foreign exchange reserves had dropped dangerously low, barely covering two weeks of essential imports like food and fuel. Industrial output had contracted by 10.3%, and GDP growth had plummeted to 0.2%. The compounded effects of COVID-19 and devastating floods causing over $30 billion in damages further tested our resilience.

Recognizing the gravity of the situation, we implemented a series of necessary reforms. These included stabilizing the exchange rate, tightening fiscal policies, and curbing inflation through targeted monetary interventions. With support from the IMF’s Extended Fund Facility (EFF) worth $7 billion, we initiated structural improvements in critical sectors such as energy and taxation. Central to this effort was “Uraan Pakistan”, an economic transformation plan launched in 2024. This initiative aims to achieve sustainable, export-led 6% GDP growth by 2028 through public-private partnerships, enhanced export competitiveness and optimized public finances. Priority sectors include agriculture, energy, textiles, pharmaceuticals and IT.

A pivotal component of Uraan Pakistan is our collaboration with the World Bank on a $20 billion initiative targeting health, education, poverty alleviation, investment and climate resilience. This transformative partnership addresses critical challenges such as child malnutrition, educational outcomes and clean energy adoption. By integrating sustainability into our development framework, we are contributing to global efforts to achieve the United Nations Sustainable Development Goals (SDGs).

In July 2024, we introduced a reform-oriented budget with an ambitious goal of raising Rs13 trillion in revenue – a 40% increase from the previous year. These reforms focused on broadening the tax base by targeting under-taxed sectors like agriculture, real estate and trade, while leveraging technology to enhance compliance and transparency. Modernizing the Federal Board of Revenue (FBR) has been instrumental in streamlining tax administration.

Path to recovery
Today, Pakistan’s economy is on a path to recovery. Inflation has dropped to 4.1%, and foreign exchange reserves now provide over two months of import coverage. Goods exports have risen by 7.1%, and the IT sector has grown by an impressive 28% year-on-year. Pakistan’s global default risk has dropped by 93%, signaling renewed faith in the country’s fiscal stability. Local and foreign investors, including global giants like Aramco, BYD and Samsung, are contributing to this economic revival, reflecting Pakistan’s potential as a lucrative investment hub.

The current account has been in surplus for three consecutive months, and investor confidence is at a two-year high. Foreign direct investment (FDI) has grown by 20% in the first half of fiscal year 2025, reflecting renewed trust in Pakistan’s economic trajectory. Initiatives like the Roshan Digital Account have attracted over $9 billion in inflows, while remittances have reached a record $35 billion this year. Additionally, Pakistan’s equity market delivered an 87% return in dollar terms, underscoring strong investor sentiment.

Internationally, Pakistan’s progress has been acknowledged, with all three top global rating agencies upgrading the country’s sovereign ratings. Moody’s revised Pakistan’s economic outlook to ‘Positive’ in September 2024, recognizing the impact of our policy measure.

Challenges remain
Despite significant achievements, challenges remain. To break free from cycles of external assistance, Pakistan is addressing structural inefficiencies in revenue collection, energy, state-owned enterprises (SOEs) and privatization. Rightsizing the federal government, reforming SOEs, and fostering export-led growth will strengthen internal revenue streams and reduce reliance on international funding programmes.

Global stakeholders are invited to support Pakistan’s journey by investing in priority sectors such as agriculture, IT, renewable energy, mining and minerals, textiles and apparels, pharmaceuticals, while capitalizing on Special Economic Zones (SEZs). Pakistan’s innovative approaches in taxation and economic stabilization offer valuable lessons for other developing economies. Furthermore, partnerships in climate resilience and sustainable development are crucial for advancing shared global goals.

The cornerstone of Pakistan’s economic transformation is political will and visionary leadership. This journey is not just about overcoming challenges but about harnessing resilience, determination and collective effort. With a remarkable workforce, abundant natural resources, and immense production potential, Pakistan is poised to soar to new heights – contributing to regional stability and global economic progress. This is Pakistan, as I see it.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the meeting of the Committee on Rightsizing the Federal Government (Wave-IV) today.

The meeting was attended by Federal Minister for Communications Mr. Abdul Aleem Khan, Members of the National Assembly, and Federal Secretaries of the relevant Ministries and Divisions.

At the outset, the Minister for Finance and Revenue highlighted and appreciated what he called a “whole of the government” approach adopted by the Ministries and their in-charge Ministers for successfully completing first three waves of the rightsizing exercise aimed at examining 43 ministries and nearly 400 attached departments of the federal government for the purpose of rightsizing before the end of the financial year.

The Minister also said the implementation of the decisions taken by the Committee and subsequently endorsed by the federal cabinet so far would be followed up for implementation by the sub-committee of the Rightsizing Committee, and the main Committee would intervene only in case of matters requiring escalation.

The Chair announced that during the fourth wave, five ministries namely Ministry of Communications, Ministry of Railways, Ministry of Poverty Alleviation and Social Safety, Revenue Division and Petroleum Division and their attached departments would be examined for rightsizing as per mandate of the Committee.

During the subsequent proceedings, Ministry of Communications gave a detailed presentation to the Cabinet body on the functions, organizational structure and possibilities of semi-privatisation and PPP models for various projects and initiatives of the Ministry. The Committee was told that in the spirit of rightsizing, the Ministry of Communications had already abolished all dyeing posts.

Federal Minister for Communications Mr. Abdul Aleem Khan also gave a perspective on the core functions of the Ministry and how its departments, particularly National Highway Authority (NHA), could be made profitable. He said the NHA could become a major revenue spinner for the government if its resources were diverted to construction of revenue-based motorways like the M-6 leading from Sukkur to Karachi port.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet today.

The meeting was attended by Mr. Ahsan Iqbal Chaudhry, Minister for Planning, Development, and Special Initiatives; Rana Tanveer Hussain, Minister for Industries and Production; Mr. Ahad Khan Cheema, Minister for Economic Affairs; Mr. Jam Kamal Khan, Minister for Commerce; Sardar Awais Ahmed Khan Leghari, Minister for Power; Chairman FBR; ED SECP; Federal Secretaries; and senior officers from relevant ministries and divisions.

The ECC considered and approved the proposal of the Ministry of National Food Security and Research for the allocation of additional funds as a Technical Supplementary Grant (TSG) of Rs. 910 million for the establishment of the National Food Safety, Animal, and Plant Health Regulatory Authority (NFSAPHRA).

The ECC also deliberated upon the proposal of the Ministry of Industries and Production regarding the disbursement of salaries to Pakistan Steel Mills (PSM) employees for the financial year 2024-25 (projected). The Committee authorized the Finance Division to approve the payment of the projected net salary of Rs. 935.78 million for FY 2024-25, to be disbursed monthly according to the salary demand of PSM. These funds will be provided from the already approved budgetary allocation of Rs. 3.5 billion.

The ECC further discussed and approved the proposal from the Power Division regarding the revision in the annual rebasing determination timeline. Policy guidelines were approved to be issued to NEPRA for revising the annual tariff determination process timeline by amending the legal and regulatory framework. The ECC directed that rebasing should be notified with effect from January 1, 2025, onward each year, following the completion of regulatory proceedings. The Power Division was authorized to approach NEPRA for the implementation of these policy guidelines.

The Ministry of Commerce presented a proposal seeking an extension of regulatory duties on finished flat steel products. The ECC approved the extension of duties on relevant iron and steel flat products until March 31, 2025, as recommended by the Tariff Policy Board during its 61st meeting held on December 26, 2024. However, the ECC emphasized that no further extensions will be entertained, referencing the Federal Government’s authority under Sub-section 3 of Section 18 of the Customs Act, 1968.

The ECC approved a request from the Ministry of Foreign Affairs for a Technical Supplementary Grant (TSG) of Rs. 90.275 million during the current financial year 2024-25. These funds will be utilized to disburse payments to PAF and PIA, ensuring operational efficiency.

The ECC also approved the proposal of the Ministry of Interior for the provision of funds for operational requirements of the Frontier Corps (FC) North during the current financial year 2024-25. A Technical Supplementary Grant of Rs. 941.400 million was sanctioned to meet the operational needs of the Frontier Corps.

The proposal from the Ministry of Maritime Affairs regarding the withdrawal of bank guarantees for Afghan Transit Trade facilitation through Gwadar Port was also considered. The ECC approved replacing the bank guarantees, imposed on October 7, 2023, for the import of Di-Ammonium Phosphate (DAP) under APTTA, with insurance guarantees.

Lastly, the ECC considered the proposal of the Ministry of Overseas Pakistanis and Human Resource Development for budget proposals for FY 2024-25 and revised estimates for FY 2023-24 regarding Employees’ Old-Age Benefits Institution (EOBI). The ECC expressed strong displeasure over the delayed submission of the proposals by EOBI and MOPHRD. While the budget proposals for FY 2024-25 were reluctantly approved, the revised estimates for FY 2023-24 were not approved. The ECC also registered its concerns over the delay in EOBI audits, with the last audit conducted in 2019. Relevant authorities were directed to thoroughly investigate the delay and submit an update to the ECC within one week.

Finance Minister Senator Muhammad Aurangzeb emphasized the importance of efficient and transparent implementation of all decisions to achieve desired outcomes.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division today.

The meeting was attended by Mr. Qaiser Ahmed Sheikh, Minister for Maritime Affairs; Mian Riaz Hussain Pirzada, Minister for Housing & Works; Mr. Ahad Khan Cheema, Minister for Economic Affairs; Federal Secretaries; and senior officers from relevant ministries and divisions.

The Committee deliberated on the reconstitution of the Board of Directors of Karachi Tools, Dies, and Mould Centre (KTDMC) under the Ministry of Industries and Production. The CCoSOEs approved the appointment of five principal candidates from the private sector, along with ex-officio directors, for a term of three years. Mr. Abdur Razaaq Gauhar was appointed as the Chairman of the Board. This reconstitution aims to improve corporate governance and ensure effective decision-making for the entity.

The reconstitution of the Board of Directors of the Technology Upgradation and Skills Development Company (TUSDEC) was also approved. The Committee appointed six principal candidates from the private sector, along with ex-officio directors, for a term of three years. Mr. Muhammad Noor ud Din Daud was selected as the Chairman of the Board. This reconstitution aligns with the SOEs Ownership and Management Policy, 2023, focusing on enhancing operational efficiency and aligning the company’s goals with national priorities.

In addition to the reconstitutions, the Committee reviewed separate business plans submitted by the Ministry of Information and Broadcasting for addressing key operational challenges and outlining roadmaps for sustainable development, including organizational growth, financial sustainability and improved services, for Pakistan Broadcasting Corporation (PBC) and Pakistan Television Corporation (PTV). The plans were prepared in compliance with the directions of the CCoSOEs and the format prescribed by the Central Monitoring Unit (CMU) of the Finance Division

The business plan submitted in respect of PBC mainly focused on a number of measures aimed at ensuring income generation through improved program content, better signal quality, utilisation of seven large unutilised concrete spaces and six large tracts of open lands located in different cities as well as installation of ATM booths and advertising billboards at appropriate sites of the Radio Pakistan. The Committee was told that the PBC would be able to achieve a break-even in two years after the execution of the proposed business plan.

For the PTV, the Ministry of Information and Broadcasting submitted a business plan featuring measures and interventions targeting digital expansion, content licensing, profitable marketing partnerships, public private partnerships, and utilisation of PTV properties for maximising operational efficiency and overall revenue potential. The Committee was told that out of 5,442 sanctioned posts of PTV, 1,232 posts had also been abolished to save costs.

The CCoSOEs deliberated on both the plans and approved them, emphasizing the importance of achieving operational excellence and the need for timely implementation of planned actions to achieve desired results. The committee also advised the Ministry of Information and Broadcasting to work through administrative boards of both PBC and PTV to proactively make use of their unutilised spaces, assets and open lands, preferably selling them to private sector instead of engaging in a real estate activity at the cost of their core functions as state broadcasters.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting on the New Energy Vehicle (NEV) Policy 2025 at the Finance Division today. The policy aims to address key challenges in the adoption and production of electric vehicles (EVs) and sets ambitious targets for transitioning to clean energy in the transport sector.

The meeting was attended by Federal Minister for Industries and Production Rana Tanveer Hussain, Governor State Bank of Pakistan, Secretary Finance, Secretary Commerce, Secretary Climate Change, Member Custom Policy, Additional Secretary Trade Policy (Ministry of Commerce), and senior officers from relevant ministries and divisions.

Secretary Industries and Production delivered a detailed presentation outlining the current state of the electric vehicle industry. The presentation emphasized policy interventions to ensure smooth adoption of NEVs in line with national priorities.

Discussions focused on overcoming barriers to electric vehicle production and adoption, improving manufacturing processes, addressing infrastructure needs, necessary policy corrections to streamline EV production, addressing supply chain issues, and encouraging private sector investment.

The Finance Minister stressed the importance of the timely development and implementation of the NEV Policy 2025-30 . The Minister stressed the importance of coordinated efforts to achieve policy targets and align them with Pakistan’s environmental and economic priorities.

The meeting concluded with a commitment to expedite efforts for the successful implementation of the NEV Policy, paving the way for a cleaner, greener, and more sustainable future for Pakistan.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Japanese Ambassador to Pakistan Mr. Akamatsu Shuichi who called on the Minister at Finance Division today.

The meeting provided an opportunity for both sides to discuss ongoing economic reforms, bilateral relations, and opportunities for deeper economic cooperation.

Minister Aurangzeb welcomed Mr. Akamatsu on assuming his diplomatic responsibilities in Islamabad, commending Japan's longstanding partnership with Pakistan. The Minister highlighted the positive momentum in Pakistan’s macroeconomic stability, which he attributed to key reforms and structural adjustments across various sectors, including fiscal framework, taxation, Special Economic Zones (SEZs), energy, rightsizing of the federal government, and privatization efforts.

The Minister emphasized that the government remains committed to continuing its reform agenda, focusing on critical issues such as population growth and climate change vulnerability. He noted the importance of the 10-year Country Partnership Framework signed with the World Bank, aimed at addressing these challenges and fostering sustainable, inclusive economic growth.

Minister Aurangzeb reaffirmed Pakistan’s commitment to maintaining the trust and credibility of its bilateral and multilateral development partners, including Japan. He expressed appreciation for Japan’s diplomatic, economic, and technical support and urged Japanese investors to explore investment opportunities in Pakistan, particularly in manufacturing and production, which would contribute to the country's exportable surplus.

Ambassador Akamatsu expressed his appreciation for the progress made in Pakistan’s macroeconomic stability and the government’s reform efforts. He provided an update on the scope of ongoing Japanese investment in Pakistan, noting that around 80 Japanese companies currently operate in the country, employing over 65,000 local workers, and significantly contributing to the Pakistani economy.

Minister Aurangzeb acknowledged Japan’s valuable contributions and assured the Ambassador of Pakistan’s continued engagement with Japanese investors to incorporate their input in the upcoming federal budget’s policy framework.

Both sides expressed a strong desire to further strengthen bilateral economic ties and explore new avenues for collaboration

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Mr. Yousaf Hussain, President of the Overseas Investors Chamber of Commerce & Industry OICCI, who called on the Minister at Finance Division today.

During the meeting, Mr. Yousaf Hussain commended the government’s efforts in ensuring macroeconomic stability, highlighting the positive impact of improved economic indicators as a result of the government's wise and prudent policies. He expressed optimism regarding the ongoing economic recovery and its prospects moving forward.

Mr. Hussain emphasized the importance of a constructive dialogue between the government and the OICCI during the consultative process for the upcoming federal budget for FY 2024-25, scheduled for June 2024. He hoped the government would continue fostering a favorable policy framework and maintaining policy continuity, which he said were essential to further consolidating economic gains and ensuring sustained macroeconomic stability.

The Finance Minister assured Mr. Hussain of the government's commitment to engaging with the business community and taking their input into account in the budget formulation process, with a focus on supporting businesses, attracting investment, and strengthening economic growth.

The meeting concluded with both sides reaffirming their commitment to working together to further enhance Pakistan’s economic prospect

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the second meeting of the Prime Minister’s Committee on Social Impact Financing at the Finance Division today. The session aimed at exploring innovative financial solutions to drive social impact, enhance financial inclusion, and uplift marginalized communities across Pakistan.

The meeting brought together a diverse group of stakeholders from the public and private sectors, including Dr. Amjad Saqib, Founder – Akhuwat Foundation, Mr. Waqas ul Hassan - CEO Karandaaz, Dr. Fatima Khushnood, CEO – Pakistan Environment Trust, Mr. Hamed Yaqoob Sheikh, Team Leader – REMIT, Dr. Ayesha Khan, Regional MD – Acumen, Ms. Maheen Rahman, CEO – InfraZamin, Ms. Shazia Maqsood Amjad, CEO – Pakistan Centre for Philanthropy, Mr. Shahid Aziz, Former CEO – Interloop Asset Management, Mr. Rashid Bajwa, CEO – NRSP, Mr. Naveed A. Khan, Chairman – Pakistan Microfinance Investment Company (PMIC). The meeting was also attended by Governor SBP, CEO State Life Insurance Corporation (SLIC), MD Bait-ul-Mal, Secretary BISP, Secretary PA&SS, and Secretary Finance.

Before initiating the meeting, Finance Minister Senator Muhammad Aurangzeb emphasized the significance of addressing both economic reforms and critical existential challenges facing Pakistan. “While we are focused on steering the economy through various reforms, we are equally committed to tackling pressing issues such as the rapid population growth, which contributes to child stunting and learning poverty, and the ongoing climate change crisis. This meeting holds immense importance in resolving and addressing both of these challenges,” remarked the Finance Minister.

The meeting proceeded with a follow-up presentation providing an update on actions from the previous session, followed by presentations from Karandaaz Pakistan and the Ministry of Poverty Alleviation and Social Safety.

Karandaaz’s presentation highlighted the global growth of impact investing, which has reached $1.571 trillion in assets under management, growing at an annual rate of 21% since 2019. The organization proposed the establishment of a Green Impact Fund (GIF), a $250 million initiative aimed at financing green micro and small enterprises (MSMEs). This fund would offer concessional loans, equity with first-loss guarantees, and technical assistance, drawing support from global climate financing sources, commercial institutions, and public or donor funding. The discussion underscored the potential of such initiatives to foster economic growth, address climate challenges, and promote bottom-up development by creating jobs and empowering underserved communities.

The Ministry of Poverty Alleviation and Social Safety also provided insights into its ongoing initiatives within the social impact financing framework. These included:
1. Benazir Income Support Programme (BISP):
• Nashonuma initiative, supporting 2 million pregnant women and children under two with nutrition and stipends.
• Kafalaat Program, offering cash transfers to 9.3 million women with a budget of Rs. 461 billion.
2. National Poverty Graduation Program (NPGP):
• Transferred productive assets to 151,822 households, providing 252,012 interest-free loans and livelihood training.
• Reported a 74.4% graduation rate out of extreme poverty, with a 30% increase in income.
3. Poverty Graduation of Extremely Poor and Flood-Affected Households (PGEP):
• A USD 134.2 million initiative providing livelihood assets, climate-smart agricultural technologies, and interest-free loans.
4. Pakistan Bait-ul-Mal Programs:
• Managing shelter homes, women empowerment centers, and the Orphan and Widow Support Program.

The discussions also focused on strategic priorities for advancing social impact financing, including:
• Mobilizing philanthropic capital and global impact investments for underserved communities.
• Developing a robust regulatory framework for social impact financing.
• Expanding financial inclusion through innovative tools and blended financing models.
• Leveraging public-private partnerships to address climate change and promote sustainable development.
• Enhancing resilience through targeted interventions for disaster-affected and climate-sensitive areas.

At the conclusion of the meeting, the Finance Minister emphasized the need for a structured approach to measure the actual social impact of financial inclusion efforts. He remarked, “It is crucial to focus on the structuring, monitoring, and reporting of social impact outcomes to effectively gauge the results of our initiatives.” The Minister also highlighted the importance of capacity building across all sectors and the creation of comprehensive dashboards for tracking progress. “While we are doing a commendable job in specific verticals, as a country, we must take a more holistic approach and scale up our efforts horizontally to ensure broader impact,” he added.

The Finance Minister urged all stakeholders to accelerate efforts in finalizing and operationalizing the proposed frameworks, ensuring that Pakistan’s goals for sustainable development, climate resilience, and poverty alleviation are realized.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting with the leadership of the Pakistan Microfinance Investment Company (PMIC). The PMIC delegation was led by Mr. Naveed A. Khan, Chairman PMIC, and included Mr. Yasir Ashfaque, CEO PMIC; Mr. Waqas ul Hassan, CEO Karandaaz Pakistan; and Mr. Saqib Siddique, Head of Portfolio & Sector Development, PMIC.

PMIC, established in 2016 under the National Financial Inclusion Strategy (NFIS), operates as a wholesale microfinance apex with the aim of enhancing financial inclusion across Pakistan. During the meeting, the PMIC team presented a detailed overview of the microfinance landscape, highlighting key challenges and opportunities. It was noted that Pakistan significantly lags behind regional counterparts, such as Bangladesh, India, and the Philippines, in terms of financial inclusion, with a potential microcredit market of 41 million, of which only 7.4 million clients are currently served.

The discussion included a comparative analysis of Microfinance Institutions (MFIs) and Microfinance Banks (MFBs). The team highlighted that while MFBs primarily lend against gold and offer nano loans, MFIs focus on rural communities and cater to underserved segments, particularly women.

Several key challenges to financial inclusion were outlined, including:
1. Dual Regulatory Framework: MFIs and MFBs operate under separate regulations, complicating the ecosystem.
2. Limited Access to Funding: Substantial liquidity is required to expand outreach, but funding remains a challenge.
3. Insufficient Institutional Capacity: The limited number of entities in the sector hinders widespread financial access.
4. Low NFIS Target Ownership: Proactive oversight is needed to meet the ambitious targets of the newly drafted NFIS 2024-28.

The Finance Minister appreciated the insights shared and stressed the importance of addressing these challenges with realistic and practical solutions. He encouraged PMIC to propose innovative funding mechanisms, such as equity endowment funds and targeted government-mandated allocations, to increase the sector’s capacity and outreach.

He reiterated the government’s commitment to accelerating financial inclusion as a cornerstone of sustainable economic development. The meeting concluded with a shared resolve to work collaboratively towards enhancing access to financial services, especially for rural and underserved populations, in alignment with the NFIS goals.

His Excellency Senator Muhammad Aurangzeb, the Finance Minister of Pakistan, paid a visit to the Chief Executive of Hong Kong Special Administrative Region (SAR), the Honorable John K C Lee, to discuss and enhance bilateral cooperation between Pakistan and Hong Kong.

During the meeting, Minister Aurangzeb and Chief Executive Lee engaged in constructive dialogue on a range of topics, including economic collaboration, trade relations, investment opportunities, and cultural exchanges between the two regions. The discussion aimed to foster closer ties and explore avenues for mutual growth and prosperity.

H.E. Senator Muhammad Aurangzeb emphasized the importance of strengthening economic and diplomatic relations between Pakistan and Hong Kong, highlighting the potential for increased cooperation in various sectors, including finance, technology, and tourism. He underlined the shared values and interests that bind the two regions and expressed Pakistan’s commitment to deepening these ties further.

Honorable John K C Lee welcomed Minister Aurangzeb’s visit and echoed the sentiment of enhancing collaboration between Pakistan and Hong Kong. He acknowledged the significance of fostering strong partnerships to drive economic development, innovation, and cultural exchange, emphasizing the mutual benefits of such cooperation.

The meeting between Finance Minister Senator Muhammad Aurangzeb and Chief Executive John K C Lee exemplified the commitment of both parties to strengthening bilateral ties and exploring opportunities for meaningful engagement across various sectors.

Pakistan’s Ambassador in Beijing, H.E. Khaleel Hashmi, and Consul General in Hong Kong, H.E. Riaz Ahmed Shaikh, were also present on the occasion.

His Excellency Senator Muhammad Aurangzeb, the Finance Minister of Pakistan, participated in the plenary session “Innovation: The Solution to Unlock the Next Growth Engines” at the prestigious Asian Financial Forum 2025 on 13th January 2025. He shared his insights as a distinguished speaker on leveraging innovation to drive economic growth and prosperity.

In his keynote speech, Minister Aurangzeb highlighted the transformative power of innovation in shaping the future of economies, particularly within Asia’s evolving financial landscape. He reaffirmed the Government of Pakistan’s unwavering commitment to providing a stable policy framework and continuity, enabling the private sector to lead the country toward progress and prosperity.

The Minister stressed the importance of adopting innovative approaches, technologies, and business models to unlock new growth opportunities, enhance competitiveness, and address emerging challenges in the global economy. He also emphasized the significance of learning from Hong Kong as a leading financial center, particularly in the use of AI and blockchain technology.

During his address, Senator Aurangzeb elaborated on Pakistan’s dedication to fostering a culture of innovation, entrepreneurship, and technological advancement to propel the country toward sustainable development and inclusive growth. He underlined the government’s role in creating an enabling environment for innovation and collaboration to drive economic progress and meet societal needs.

As a respected leader in finance and economic policymaking, H.E. Senator Muhammad Aurangzeb’s participation in the Asian Financial Forum 2025 highlighted Pakistan’s commitment to embracing innovation as a key driver of future prosperity and resilience.

Finance Minister of Pakistan, His Excellency Senator Muhammad Aurangzeb, held an important meeting with the leadership of Servis Long March, including Chinese Chairman Jin Yongsheng and CEO Omar Saeed, on the eve of the Asian Financial Forum in Hong Kong.

During the meeting, Minister Aurangzeb emphasized the importance of establishing a favorable policy framework to enable Pakistani businesses to explore opportunities in international equity capital markets. He appreciated Servis Long March’s intention to list on the Hong Kong Stock Exchange and assured the Government of Pakistan’s support not only for this listing but also for other companies pursuing international equity capital raising.

Chairman Jin Yongsheng and CEO Omar Saeed highlighted Servis Long March’s growth trajectory and the potential benefits of listing on an international platform to access global capital markets.

The discussions also focused on the broader implications of this collaboration, emphasizing the need to enhance Pakistan’s presence in international financial markets and attract foreign investment.

The meeting concluded with a mutual understanding of the need for continued dialogue and cooperation to address the complexities of international listings and capital raising.

The interaction between Finance Minister Senator Muhammad Aurangzeb and the Servis Long March leadership reflected a shared commitment to developing Pakistan’s capital markets and strengthening the country’s position in the global financial landscape.

The meeting was attended by Mr. Musadik Masood Malik, Minister for Petroleum; Sardar Awais Ahmad Khan Leghari, Minister for Power; Mr. Ali Parvez Malik, Minister of State for Finance and Revenue; and Federal Secretaries and senior officers from relevant ministries and divisions.

The ECC reviewed and approved a Technical Supplementary Grant (TSG) of PKR 1.945 billion in favor of the Ministry of Defence.

The Economic Coordination Committee also approved a Technical Supplementary Grant (TSG) of Rs. 5.276 million for the National Commission on the Status of Women (NCSW), which involves the reallocation of funds from the Ministry of Human Rights (MoHR). This decision is aimed at supporting NCSW’s efforts in advancing gender equality and women’s empowerment in Pakistan.

The ECC considered and approved a proposal from the Ministry of Information and Broadcasting for a Technical Supplementary Grant (TSG) of PKR 2,462.302 million to facilitate the execution of 15 projects under the Public Sector Development Programme (PSDP) for FY 2024-25.

The Ministry of Information and Broadcasting also presented a proposal to clear outstanding liabilities for the “Korean Culture Week” event and the 23rd Shanghai Cooperation Organization’s (SCO) Council of Heads of Government (CHG) meeting held in 2024. Due to insufficient budgetary allocations under operational heads, liabilities amounting to Rs. 25 million for the Korean Culture Week and Rs. 95.822 million for the SCO CHG meeting remain unpaid. The ECC approved the reallocation of Rs. 120.822 million as a Technical Supplementary Grant.

The Ministry of Federal Education and Professional Training presented a request for a Technical Supplementary Grant (TSG) of Rs. 1.5 billion. The funding is intended to increase the salaries of faculty members under the Tenure Track System, which has not been revised since 2021. The ECC approved the request.

The Ministry of Interior requested a Technical Supplementary Grant of Rs. 650.357 million to cover security arrangements and maintain law and order during the Shanghai Cooperation Organization Summit 2024, repair safe city cameras damaged during violent protests, and address other law enforcement needs. The ECC approved the request.

Additionally, the ECC approved a request from the Ministry of Interior to settle outstanding liabilities of US$ 6.170 million (approximately Rs. 1.72 billion) with M/s Huawei Technologies Co. Ltd. This payment is to clear the remaining 5% of the contract cost for the Safe City Project Islamabad, as directed by the Islamabad High Court.

The Ministry of Industries and Production proposed declaring the Warehousing and Logistics Sector as an industry. The ECC reiterated its previous decision made on August 15, 2024 whereby the Summary containing proposal of declaring Warehousing as Industry was approved.

The ECC also reviewed a request from the Ministry of Industries and Production to continue the Prime Minister’s Relief Package through the Utility Stores Corporation (USC) in FY 2024-25. The ECC approved Rs. 1.679 billion to cover expenses incurred by USC between June 30 and August 18, 2024, on the condition that the subsidy was budgeted for this year, and no further expenditures would be carried beyond this period.

Finally, the Ministry of Commerce presented a proposal to ban the import of Polyol blended with HCFC-141b and HCFC-142b. The ECC approved the ban, effective from the end of January 2025. The committee also instructed the Ministry of Climate Change to consult with the Ministry of Industries and Production to ensure the latter has sufficient time to inform the relevant industry. It was further directed that no new LCs for the banned chemicals shall be opened.

In concluding remarks, Finance Minister Senator Muhammad Aurangzeb emphasized the importance of timely policy measures to address critical economic, energy, and industrial needs, with a focus on transparency and efficiency in implementation.

A delegation of Population Council led by President Dr. Rana Hajjeh called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division today.

The meeting, also attended by Dr. Zeba Sathar, Country Director of the Population Council, and senior officers from the Ministry of Finance, focused on the critical issues surrounding population growth, demographic change, and their implications for Pakistan's development and economic growth.

During the meeting, Minister Aurangzeb emphasized the significant challenges posed by rapid population growth, particularly in the context of the country's development goals. He stressed the need for a sustained, long-term, and evidence-based approach to understanding and addressing population dynamics. He called for integrating these dynamics into planning across key sectors such as health, education, employment, urbanization, and the environment, as a means to unlock the full potential for socio-economic development.

Dr. Hajjeh and Dr. Sathar provided insights into the Population Council’s ongoing research and initiatives aimed at addressing these issues. The delegation reaffirmed its commitment to supporting Pakistan’s efforts in crafting comprehensive, data-driven policies to ensure the country’s demographic transition aligns with sustainable development.

The meeting marks a significant step in fostering collaboration between the Population Council and the Ministry of Finance in tackling the challenges of population growth and its impact on Pakistan's future.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the 3rd meeting of Revenue Mobilisation, Investment and Trade Programme (REMIT) Steering Committee here today to review the status and progress on the implementation of decisions taken by the Committee in its earlier meetings with regard to revenue mobilization, investment climate, trade and macro-economy.

British High Commissioner to Pakistan, Ms Jane Marriott and senior leadership from key government ministries, including Ministry of Planning, Ministry of Finance, Ministry of Commerce, Ministry of Industries and Production, Board of Investment, FBR and REMIT’s implementing partners – World Bank, GCSI and ASI were also present.

The committee discussed the progress made by stakeholders across various sectors, focusing on strengthening macroeconomic stability and creating conditions conducive to high and sustained inclusive growth. Areas reviewed included revenue mobilization, trade, investment climate, and macroeconomic governance, with a particular emphasis on addressing climate change challenges.

Senator Muhammad Aurangzeb commended the overall progress of the Programme and called for a more proactive and coordinated approach among implementing partners. He urged the effective use of management and monitoring tools to ensure the successful completion of the Programme’s objectives. The Minister also emphasized his personal commitment to overseeing the progress of activities and deliverables, ensuring that the Programme stays on track.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met with Mr. Rizwan Saeed Sheikh, Ambassador of Pakistan to the United States of America, who called on the Minister at Finance Division today.

The meeting focused on strengthening the Pakistan-US bilateral relationship, particularly in the areas of trade, investment, and economic cooperation.
During the meeting, the importance of the Pakistan-US partnership, and the acknowledgment of the US as Pakistan’s largest trading partner and export destination was reiterated and it was decided to further enhance economic diplomacy and explore new opportunities for joint business ventures and economic collaborations between the two countries.

Given the positive macroeconomic developments in Pakistan, including improvements in key economic indicators and enhanced macroeconomic stability, both the Minister and the Ambassador agreed to capitalize on these openings by actively promoting investment opportunities in Pakistan, with a focus on engaging the Pakistani diaspora.

The meeting also decided to ensure regular updates on macroeconomic data with stakeholders and the diaspora in the US to encourage investment in Pakistan’s growing economy.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting today with Mr. Jameel Ahmad, Governor of the State Bank of Pakistan, at the Finance Division.

During the meeting, Governor Ahmad provided a comprehensive year-end review of the ongoing and planned initiatives aimed at strengthening Pakistan's fiscal framework. He highlighted efforts to stabilize the exchange rate and bolster foreign reserves. The overall performance of the banking sector and its significant contributions to the economy were also discussed, with both sides recognizing the sector's pivotal role in supporting economic growth.

Additionally, the meeting focused on measures to further enhance the inflow of workers' remittances, with a shared commitment to strengthening this vital source of foreign exchange for the country. Both the Minister and the Governor acknowledged the importance of continued collaboration between the Finance Ministry and the State Bank to achieve economic stability and sustainable growth.

His Excellency Donald Blome, Ambassador of the United States of America to Pakistan, paid a farewell call on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division today. During the meeting, both sides discussed matters of mutual interest, with a focus on economic cooperation and bilateral relations.

Senator Aurangzeb briefed the Ambassador on Pakistan's economic outlook, emphasizing the government's reform agenda aimed at achieving macroeconomic stability and ending the boom-and-bust cycle through export-led growth. He highlighted the key sectors of the economy where reforms are being pursued to foster sustainable growth.

The Minister expressed gratitude to the United States for its invaluable support in facilitating the signing of the Stand-by Arrangement (SBA) and the subsequent Extended Fund Facility (EFF) with the International Monetary Fund (IMF). Senator Aurangzeb also acknowledged the critical role of the US as Pakistan’s largest trading partner and a significant market for Pakistani goods and services.

The Finance Minister particularly noted the growing IT export sector, emphasizing the substantial potential for further expansion of digital exports to the US. He highlighted the promising prospects of enhancing trade in the IT and digital services sectors, with both countries poised to benefit from closer economic ties.

Ambassador Blome expressed his appreciation for the strong and enduring relationship between the United States and Pakistan and reiterated the commitment of the US to continue supporting Pakistan’s economic reforms and growth. The meeting concluded on a positive note, with both sides expressing their desire to further strengthen bilateral relations, especially in the areas of trade and economic collaboration.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division today.

The meeting was attended by the Minister for Planning, Development and Special Initiatives, Mr. Ahsan Iqbal Chaudhry; Minister for Housing and Works, Mian Riaz Hussain Pirzada; Minister for Maritime Affairs, Mr. Qaiser Ahmed Sheikh; Governor State Bank of Pakistan (SBP); Chairman Securities and Exchange Commission of Pakistan (SECP); Federal Secretaries; and senior officers from the Finance Division.

The Committee deliberated on a summary presented by the Ministry of Information and Broadcasting (MoIB) regarding the privatization and exploration of a Public-Private Partnership (PPP) model for the Shalimar Recording and Broadcasting Company Limited (SRBC). During the discussion, the Cabinet Committee reiterated its earlier decision that organizations like SRBC will not be classified as strategic or essential. The MoIB will be required to abide by the Cabinet’s earlier decision regarding non-essential and non-strategic SOEs.

In addition, the Committee reviewed the implementation status of decisions previously taken regarding various SOEs under the agendas of the Cabinet Division, Ministry of Information and Broadcasting, Ministry of Petroleum, Ministry of Railways, and Revenue Division. A presentation was given highlighting the six cases currently under implementation across these ministries, with two cases pertaining to the Cabinet Division and one each for the others. The review emphasized ensuring timely execution of all decisions.

Islamabad, Dec 24 (APP):Khurram Schehzad, Adviser to Finance Minister, was invited to the Pakistan Stock Exchange (PSX) by CEO, PSX, Farrukh Sabzwari, to discuss strategies for enhancing the depth and performance of the capital market.

During his meeting with the CEO and senior management of PSX, Schehzad received a comprehensive overview of PSX’s strategic initiatives aimed at unlocking potential of Pakistan’s capital markets, said a press release issued here on Tuesday.

The CEO of PSX emphasized that, despite challenges, Pakistan’s capital markets possess immense potential.

He expressed confidence that through a well-formulated strategy, PSX could realize this potential and significantly contribute to the economy.

Schehzad reaffirmed the government’s commitment to supporting capital market growth, recognizing its role in stabilizing as well as underpinning growth in the country’s economy.

To achieve this goal, Mr. Schehzad urged the management to formalize recommendations for structural changes and privatization of State-Owned Enterprises (SOEs), which could advance governmental goals and boost market capitalization.

Furthermore, he recommended rebranding and repositioning the GEM board to function as a platform for venture capital and startup fundraising.

The Key Initiatives planned and discussed include , taking concrete steps for high-value listings to increase market capitalization and attract foreign investment and setting an ambitious target to increase the investor base to 2% of the national population within three years, engaging brokers and mutual funds in the campaign.

Introduction of new investment products, such as Exchange-Traded Funds (ETFs), options markets, and derivatives, to enhance market attractiveness and exploring algorithmic trading and robo-advisory services, drawing insights from successful implementations in countries like China.

Mr. Schehzad emphasized the need for the PSX and the SECP to collaboratively develop a roadmap aimed at increasing Pakistan’s weight within the MSCI Frontier Markets index, ultimately achieving inclusion in the MSCI Emerging Markets index. He also endorsed the recommendation to form a formal committee comprising PSX, SECP, and the State Bank of Pakistan (SBP) to leverage each entity’s strengths.

This initiative would aim to foster financial inclusion, enhance public awareness, and promote seamless digitization and promoting the KSE-100 Index’s remarkable returns was identified as an essential task for brokers and market participants.

Mr. Schehzad praised the relaunch of cash-settled futures as a significant step towards developing the country’s derivatives market.

Collaboration with Chinese capital markets is critical to facilitate cross-border investment opportunities, broaden market access, and stimulate investor participation. With these initiatives, Pakistan’s capital market is poised for significant growth, driving economic development and stability.

The Ministry of Finance, Government of Pakistan, hosted a special cake cutting ceremony in connection with celebration of the occasion of Christmas by the Christian staff of the Finance Division. The event was attended by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, along with senior officers of the Ministry. The ceremony began with prayers for the peace, security, and solidarity of the country. Minister Aurangzeb extended heartfelt Christmas greetings to the Christian staff, recognizing their contributions and reaffirming the government's commitment to promoting inclusivity and equality for all citizens.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has reiterated the government’s resolve to restructure and transform the country’s tax machinery for ensuring an efficient tax system and equitable taxation by introducing people-processed technology and ensuring end-to-end digitalization to end human intervention, bring transparency and reduce corruption.

The Minister said the government remains committed to raising the country’s tax-to-GDP ratio by broadening the tax base and rationalizing a disproportionate burden on the organized sectors of the economy such as manufacturing and the salaried classes.

He expressed these views during a meeting with Mr. Karim Yahi, Global CEO of Coca-Cola İçecek (CCI), who along with Mr. Ahmet Kursad Ertin, Regional Director (South Asia & Middle East); Mr. Sunay Sanli, General Manager CCI Pakistan; and Syed Omar, Director Corporate Affairs & Sustainability CCI Pakistan, called on the Finance Minister today. Senior officers from the Finance Division and FBR were also present.

The visiting delegation provided the Minister an overview of CCI’s extensive operations in Pakistan, which include seven state-of-the-art production facilities and substantial contributions to the national economy through investments and the creation of thousands of direct and indirect jobs. They also emphasized their commitment to sustainability and shared their vision for continued expansion of their business in Pakistan.

The Finance Minister appreciated CCI’s role as a key investor and economic contributor in Pakistan. He commended the company’s efforts to promote sustainable business practices, boost industrial growth, and create employment opportunities across the country. Highlighting the government’s commitment to fostering an investor-friendly environment, Senator Aurangzeb stated: “The Government of Pakistan deeply values the contributions of multinational corporations like Coca-Cola İçecek in strengthening our economy and generating employment. We are committed to ensuring a business environment that promotes innovation, growth, and sustainability.”

Discussions during the meeting touched upon taxation policies and their impact on the beverage sector. The Finance Minister underscored the government’s commitment to equitable taxation policies that foster economic growth while ensuring sustainable revenue generation. He expressed appreciation for CCI’s proactive approach in engaging with the government on policy matters, emphasizing that such dialogue is vital to aligning business practices with national economic goals. The Minister reiterated that the Government of Pakistan recognizes the importance of maintaining a balanced taxation framework that supports industrial growth while ensuring fiscal responsibility.

The meeting concluded with mutual commitment to a continued stakeholder engagement for better policy framework and exploring collaborative opportunities aimed at promoting sustainable development and fostering long-term economic growth in Pakistan.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet, today.

The meeting was attended by Mr. Rana Tanveer Hussain, Minister for Industries and Production; Mr. Musadik Masood Malik, Minister for Petroleum; Sardar Awais Ahmad Khan Leghari, Minister for Power; Mr. Ahad Khan Cheema, Minister for Economic Affairs; Mir Jam Kamal Khan, Minister for Commerce; Mr. Ali Parvez Malik, Minister of State for Finance and Revenue; Governor State Bank of Pakistan; Chairman SECP; and Chairman Board of Investment. Federal Secretaries and senior officers from relevant ministries and divisions also attended the meeting.

The ECC deliberated on a detailed agenda and made the following decisions:

1. The ECC reviewed a summary submitted by the Ministry of Commerce regarding the sharing of subsidy on imported urea on a 50:50 basis. It approved the release of PKR 10 billion to the Ministry for immediate settlement of outstanding dues related to imported urea subsidies. The decision aims to alleviate the financial burden and ensure the smooth and timely availability of urea to meet agricultural needs. The ECC further directed the provinces to fulfill their share of subsidy payments, emphasizing equitable cost-sharing among all stakeholders.

2. The ECC considered a summary from the Ministry of Federal Education and Professional Training seeking approval for the provision of a PKR 1 billion government guarantee to launch the Pakistan Skills Impact Bond (PSIB), with NAVTTC as the issuer of the bond. The Committee advised the Ministry to develop a comprehensive plan and resubmit the summary for consideration.

3. The ECC approved a summary submitted by the Ministry of Housing and Works for the provision of a Technical Supplementary Grant (TSG) amounting to PKR 1.884 billion. The grant will facilitate necessary expenditures and address the financial requirements of ongoing projects under the Ministry.

4. The ECC approved a proposal regarding the establishment of the Siah Dik Copper Project in District Chagai, Balochistan, submitted by the Ministry of Industries and Production. It approved the declaration of Private Export Processing Zone (Saindak EPZ), under Section 9A read with Section (k) of the Ordinance. The decision aims to facilitate the development and export potential of the mineral sector in the region.

5. The ECC approved a budget allocation of Rs. 536.1 million for the Ministry of Information and Broadcasting as a Technical Supplementary Grant (TSG) under Demand No. 66 during FY 2024-25 from Cost Center IB5501 (Publicity and Advertising, I&B Division) under Demand No. 45: Grants, Subsidies, and Miscellaneous Expenditure.

6. The ECC approved a TSG amounting to Rs. 2,022,857,991/- (approx. USD 7,276,468/-) for the Digital Economy Enhancement Project (DEEP) NADRA, as surrendered by the Ministry of Information Technology & Telecom for the year 2024-25 in favor of the Ministry of Interior.

7. The ECC reiterated its previous decision regarding a quota ratio local/imported wheat for the remaining months of the current fiscal year at subsidized rates.

8. The ECC approved a proposal from the Ministry of Law and Justice to transfer funds amounting to Rs. 21,250,000 to the Islamabad High Court, Islamabad, through a Technical Supplementary Grant for the repair and maintenance works of the buildings of the Islamabad High Court.

9. The ECC approved a Technical Supplementary Grant (TSG) of Rs. 1,086 billion to pay outstanding claims of ZTBL under the Prime Minister’s Fiscal Package for Agriculture in the wake of Covid-19.

10. The ECC approved the restructuring plan for PRAL (Pakistan Revenue Automation Limited). It also decided on a revised financial flow and budgeting mechanism, including the opening of selected cost centers and the diversion of current year funding in consultation with the Secretary Finance. The provision of Rs. 3.7 billion as a Technical Supplementary Grant (TSG) for the current financial year 2024-25 was approved.

11. The ECC approved a Technical Supplementary Grant (TSG) of Rs. 523.078 million for the Special Investment Facilitation Council (SIFC) for its development needs.

12. The ECC considered the summary regarding the security package documents for the 7.07 MW Railii-II Hydro Power Project under the Power Generation Policy 2015. It approved the GOPIA (along with the GOP Guarantee) and the draft EPA for the Railii-II Hydro Power Project. It also approved AJ&KIA and WUA, with the contractual and payment obligations of AJ&K being backstopped and guaranteed by the GOP. The Boards of PPIB, CPPA-G, and GOAJ&K were authorized to make necessary project-specific amendments to the draft security package documents to ensure compliance with NEPRA’s Tariff Determination. The ECC directed to monitor timely financial close.

13. The ECC approved a Technical Supplementary Grant (TSG) amounting to Rs. 14 billion from the Prime Minister’s National Programme for Solarization of Agricultural Tubewells in Pakistan. The grant will be transferred under the Development Expenditure of the National Food Security and Research Division to the Power Division for onward payment, supporting energy efficiency in the agriculture sector.

14. The ECC approved the Finance Division’s proposal for the arrangement of rupee cover amounting to PKR 10 billion. This includes adjustments from the current side budgetary allocation for the current fiscal year, with USD 105.5 million allocated for the Water Infrastructure Project (WIF) funded by ADB and USD 137 million for the Flood Impact Infrastructure Project (FIIP) funded by the World Bank.

15. The ECC approved the inclusion of Tier 4 in the Cabinet-approved portfolio of the Prime Minister’s Youth Business and Agriculture Loan Scheme (PMYBALS). Under Tier 4, all loans will be term loans only, with an end-user rate of 0% on a first-loss basis on the disbursed portfolio. The scheme has a budgetary allocation of PKR 8.6 billion for the current fiscal year.

16. The ECC approved the creation of a Pension Fund through a Non-Banking Finance Company (NBFC) regulated by the SECP. Rs. 30 million was authorized as seed money for the NBFC, with Rs. 1 million approved to meet incorporation expenses. The following individuals were appointed 3 first directors of the company and a temporary Chief Executive Officer until a permanent CEO is appointed.

In concluding remarks, Finance Minister Senator Muhammad Aurangzeb emphasized the importance of ensuring timely policy measures to address critical economic, energy, and agricultural needs, with a focus on transparency and efficiency in implementation.

Chairing the meeting of the Economic Coordination Committee, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, provided a comprehensive overview of the economic landscape, underscoring the government's consistent efforts to implement policies aimed at bolstering economic stability and ensuring sustainable growth.

The Minister also highlighted the progress made towards economic stability, the continued improvement in various economic sectors, and the government's firm resolve to maintain and accelerate this momentum. He emphasized that the positive trends observed in economic indicators reflect the effectiveness of the government’s targeted measures and commitment to steering the country towards greater prosperity.

A key highlight of the meeting was the presentation of the most recent Consumer Price Index (CPI) data, which recorded a significant drop to 4.9% in November 2024. This represents the lowest level of inflation since April 2018, when CPI stood at 3.96%. The current CPI figure marks the lowest in the past 78 months, signaling a positive shift in the country's inflationary trends. The decline in CPI reflects the government's success in managing inflationary pressures and restoring price stability, particularly for essential commodities.

The ECC was also briefed on the substantial reduction in the prices of several essential goods and services. Among the items that have seen price drops are wheat flour, chillies powder, diesel, petrol, pulses, onions, basmati rice, electricity charges, sugar, plain bread, tea, soap, chicken, eggs, tomatoes, garlic, firewood, and salt. These reductions are seen as critical measures that have eased the financial burden on the common man and strengthened the purchasing power of the population.
Minister Aurangzeb appreciated the efforts of relevent stakeholders as prices of Chicken has droped to Rs. 49 per kg (from Rs. 383 to Rs. 334), Gram pulse Rs.31per kg (from Rs. 411 to Rs. 380) and Mash pulse to Rs. 20 per kg (from Rs.528 to Rs.508) during last four weeks. The Chair also directed the NPMC and provincial govts to ensure smooth supply of essential items as well as take corrective measures regarding undue price hike.

The Minister reiterated that the government remains fully committed to ensuring that the positive trajectory of the economy continues. He emphasized that the government's fiscal policies, including effective management of public finances, trade, and energy sectors, have contributed significantly to the improvement in these indicators. The Minister also reassured the public and business community that the government would remain focused on addressing inflation, stabilizing the currency, and improving domestic production.

During the meeting, it was noted that while the country is experiencing a period of economic stability, continued efforts are required to maintain this progress. The government plans to enhance economic diversification, invest in key sectors like agriculture, manufacturing, and infrastructure, and pursue reforms to strengthen the financial system. The ECC also acknowledged the critical role of public-private partnerships in achieving long-term economic growth and job creation.

The meeting reaffirmed the government's commitment to ongoing reforms and stabilization measures aimed at ensuring economic growth and improving the living standards of the people. The Economic Coordination Committee will continue to closely monitor developments and take proactive steps to safeguard economic stability and foster sustainable growth.

The Finance Minister expressed optimism that the progress made so far would serve as a foundation for future successes, as the government remains dedicated to building a prosperous and stable Pakistan.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a high-level meeting of the Prime Minister’s Committee on IT Export Remittances at the Finance Division today to explore ways for boosting the flow of IT export remittances, which are crucial for Pakistan’s economic growth and digital economy.

The meeting was attended by Minister of State for IT & Telecom Ms. Shaza Fatima Khawaja; Advisor to the Finance Minister Mr. Khurram Schehzad; Chairman FBR; Governor SBP; CEO Pakistan Software Export Board (PSEB); Secretary and Special Secretary IT & Telecom; Member IT & Telecom; and senior officials from the Finance Division.

The Finance Minister underscored the IT sector’s critical role as a rapidly growing industry contributing to Pakistan’s economic growth. “The IT sector has the potential to be a cornerstone of foreign exchange generation through exports remittances. A collaborative approach, consistent policies, and targeted reforms are essential to unleash its full potential and repatriation of foreign earnings,” he stated.

The meeting highlighted the sector’s opportunities and challenges, focusing on improving the ease of capital movement to boost IT export remittances. Participants noted that while IT exports are steadily increasing, a substantial portion of revenue remains unremitted. Discussions emphasized the need for simplified procedures, consistent tax exemptions for freelancers, and addressing issues related to remote workers classification and small IT firms to create a more favorable environment for IT businesses to remit their earnings back into the country.

It was noted that Pakistan is home to 2.32 million freelancers - contributing 15% of IT exports - yet only 38,000 hold bank accounts. While 500 new accounts are being opened weekly, as par SBP data, retaining these account holders and encouraging others to follow the course is of crucial importance. The Governor SBP updated the committee on measures that have been taken to address these challenges, including streamlining account opening procedures, awareness campaigns, improving complaint resolution mechanisms and prioritizing the IT sector in banking frameworks.

Participants also explored leveraging the Roshan Digital Account to facilitate international remittances for IT companies and freelancers. The discussion stressed the urgent need for access to global payment gateways like PayPal and creation of similar payment solutions at home to empower IT professionals and freelancers and enhance Pakistan’s global competitiveness.

To ensure data-driven discussion and effective policymaking, it was decided to form a working group comprising representatives from FBR, SBP, the IT Ministry, P@SHA, and the Freelancers Association. The group will focus on harmonizing data, identifying significant issues, simplifying processes, enhancing transparency, and ensuring continuity of progress made by SBP and other stakeholders.

The Finance Minister reaffirmed the government’s commitment to fostering the IT sector as a vital contributor to the economy. He urged all stakeholders to work collectively to overcome challenges, promote IT exports, and establish Pakistan as a competitive player in the global IT industry.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said that Islamic finance and Islamic capital markets can play a pivotal role in helping Pakistan remain steadfast on the road to macroeconomic stability and sustainable growth.

He said that Pakistan had faced significant economic challenges in recent years. However, those issues were now being effectively addressed, and the country was on the right trajectory towards microeconomic stability and sustainable growth. He said Islamic finance, specifically Islamic capital markets, could play a pivotal role in this road to market as instruments such as sukuk, equity funds, and Shariah-compliant investment vehicles not only attracted investment but also reduced reliance on interest-based borrowing.

This was stated by the Minister while addressing virtually the inaugural session of the Second International Islamic Capital Markets Conference & Expo that opened in Karachi today. Shaikh Ebrahim Bin Khalifa Al-Khalifa, Chairman, AAOIFI Board of Trustees, Dr. Sami Al-Suwailem, Acting Director General, Islamic Development Bank Institute, Mr. Akif Saeed, Chairman SECP, Mr. Saleemullah, Deputy Governor SBP, and other senior delegates attended the session.

In his keynote address to the session, the Finance Minister described the conference as reflective of Pakistan’s growing commitment to fostering a robust Islamic capital market, highlighting the country’s dedication to transforming its financial ecosystem in line with Shariah principles.

He said the Government of Pakistan remains firm in its commitment to transforming the financial system in line with Shariah principles, adding that as of June 30, 2024, 56% of market capitalization at the Pakistan Stock Exchange comprises Shariah-compliant securities. “In the collective investment segment, 48% of assets under management of mutual funds, 66% of assets under management of voluntary pension funds, and 95% of assets under management of REITs are already Shariah-compliant. These statistics deflect the progress that we have made over year.”

Senator Muhammad Aurangzeb underlined the need for “an economic system that is not only in line with our faith but also capable of inclusive and sustainable economic growth”. “Only then, we will be able to extend the benefits of all our efforts to the citizens of Pakistan,” he added.

He said that Islamic finance and instruments such as sukuk, equity funds, and Shariah-compliant investment vehicles were vital tools for mobilizing resources for critical sectors, including infrastructure development and poverty alleviation through Islamic social finance, while maintaining adherence to ethical and transparent principles. “With these mechanisms in place, Pakistan has the potential to emerge as a leading global hub for Islamic finance,” he added.

He noted that a growing interest in Shariah-compliant investment products was a testament to the increasing global demand for ethical and sustainable financial solutions. “The steady and healthy growth of Islamic finance, both in Pakistan and internationally, reflects the shifting preferences of investors towards value-based financial systems,” he said, adding “this demand has spurred interest from market participants across sectors, both within and outside of banking, which is contributing to the creation of a comprehensive Islamic finance ecosystem”.

The Finance Minister further noted that full realization of the potential of Islamic finance was not possible without collective and collaborative efforts of scholars, financial institutions, regulatory bodies, and industry practitioners to address existing challenges, develop innovative Shariah-compliant financial products, and build public trust. “We must ensure that Islamic finance is not only rooted in Shariah principles but also practical, transparent, and capable of meeting the evolving needs of our people,” he added.

In the end, the Minister commended the efforts of SECP for advancing Islamic finance in Pakistan and its initiatives in creating an enabling regulatory environment to support Islamic finance in the non-bank financial sector as well as stablishing Shariah-compliant indices, introducing Shariah governance frameworks, and developing guidelines for offering Islamic financial services. He, however, urged the SECP to continue to make dedicated efforts toward innovation and inclusivity in Islamic capital markets.

Key positive highlights for Pakistan from the Q4 2024 Ipsos survey:

1. Doubling Optimism: Belief in the country's right direction nearly doubled to 19%, the highest in 36 months.

2. Inflation Eases: Inflation concerns dropped by 16 points, the lowest in 3.5 years.

3. Economic Strength Perception: Those calling the economy "strong" quadrupled since September 2023, while "weak" views declined by 9 points.

4. Spending Comfort: Comfort with household purchases improved by 6 points this quarter.

5. Future Optimism: 21% expect their local economy to strengthen in the next six months.

6. Savings Confidence Rebounds: Confidence in saving for the future is rising again.

7. Stable Job Security: Confidence in job security remains at a 3-year high.

8. Global Ranking Boost: Pakistan's Global Consumer Confidence Index improved, surpassing Türkiye for the first time in two years, while India, China, and Brazil are down.

These signals reflect growing public confidence and steady progress in economic resilience. They also provide the government with more impetus to further build on these achievements to ensure sustained economic progress and prosperity for all citizens.

The survey incorporates responses from all 4 provinces of Pakistan, ICT, GB & AJK.

A high-level delegation of foreign investors and business professionals, mostly based in the United States, called on Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division today.

The delegation put together by Ambassador Ali Jehangir Siddiqui of the JS Bank comprised leading entrepreneurs, business practitioners and professionals from diverse sectors, including technology, academia, and finance, with lead members such as Mr. Auren Hoffman, Chief Executive Officer of SafeGraph, Mr. Kristen Edwards Marqua (Hakluyt & Company), Michael Levi (The D.E. Shaw Group), Dr. Jeff Chang (Rad AI), and others.

Ambassadar Ali Jehangir Siddiqui opened the discussion by apprising the Finnace Minister about the composition of the delegation, the purpose of their visit and their interaction with different stakeholders during the visit so far. Advisor to the Finance Minister Mr. Khurram Shehzad and senior officers of the Finance Division and FBR were also present.

The Finance Minister welcomed the delegation and briefed them about the country’s recent macroeconomic progress, highlighting significant achievements in overcoming longstanding challenges. “Pakistan has historically struggled with twin deficits; however, due to improved export performance, the economy is now operating with a surplus in both fiscal and current accounts. Foreign exchange reserves have crossed the $12 billion mark, inflation has been brought down to single digits, and the policy rate is moving in the right direction,” he noted. He further elaborated on the government’s comprehensive reform agenda, encompassing privatization, SOE restructuring, rightsizing of the federal government, and pension reforms.

Senator Aurangzeb also addressed two existential challenges faced by Pakistan: rapid population growth and climate change. “With a population growth rate exceeding 2%, we face severe implications for food security, child stunting, and out-of-school children. Climate change exacerbates these vulnerabilities, making it imperative to secure both financial and technical assistance to tackle these issues effectively,” he remarked. He also mentioned that he has emphasized the importance of these priorities in discussions with international partners, including World Bank President Ajay Banga.

The briefing was followed by a detailed question-and-answer session. Addressing a query on implementing IMF conditions and structural reforms, the Minister remarked: “The willingness and ability to execute reforms are crucial. While we have significant work ahead, as long as we maintain commitment and momentum, and stay the course, we will achieve the desired outcomes.”

Responding to another question, he stressed the role of the private sector in driving economic growth. “Policy frameworks and continuity are the government’s responsibility, but the private sector must lead the economy. The government’s focus is on creating an enabling environment to support this transition,” he stated.

The delegation appreciated the government’s efforts in stabilizing the economy and discussed opportunities for collaboration in areas such as innovation, investment, and financial inclusion. The meeting concluded with a shared resolve to strengthen U.S.-Pakistan cooperation in achieving mutual economic goals and addressing shared challenges.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the Prime Minister’s Committee on Social Impact Financing at the Finance Division today. The session focused on advancing innovative financial solutions to drive social impact, enhance financial inclusion, and uplift marginalized communities in Pakistan.

The meeting brought together a diverse group of stakeholders from the public and private sectors, both in person and virtually, including Minister of State for Finance and Revenue Mr. Ali Parvez Malik, Governor State Bank of Pakistan, Chairman SECP, President Pakistan Banks’ Association, MD Pakistan Bait-ul-Mal, MD State Life Insurance Corporation, Mr. Kamran Shams (CEO, Akhuwat Foundation), Dr. Waqas Ul Hassan (CEO, Karandaaz Pakistan), Dr. Fatima Khushnood (CEO, Pakistan Environment Trust), Mr. Hamed Yaqoob Sheikh (Team Leader, FCDO REMIT Program), Mr. Shahid Aziz (CEO, Interloop Asset Management), Mr. Rashid Bajwa (CEO, National Rural Support Programme), and Secretaries of Social Sector and Poverty Alleviation Division, Law and Justice Division, Finance Division, along with senior officers from relevant ministries and departments.

The Finance Minister highlighted the government’s role in establishing a robust policy and regulatory framework for social impact financing, emphasizing that the private sector would lead implementation efforts. “The private sector has already been doing an outstanding job in this domain, and we must focus on creating an enabling environment rather than establishing yet another government institution. This aligns with the government’s rightsizing objectives,” he said.

He further stressed the importance of moving beyond charity to broader impact financing. “Transparency from philanthropy to the end beneficiaries is essential. Digital solutions must be integrated to ensure efficient systems, while accountability and impact evaluation will build trust and credibility among stakeholders,” he added.

The discussions centered on key priorities:
1. Developing a policy and regulatory framework to connect philanthropic contributions, including Sadaqaat and Zakat, with the underserved segments of society.
2. Mobilizing philanthropic capital to achieve tangible and sustainable social outcomes.
3. Addressing legal, financial, and regulatory challenges to create an enabling environment for impact financing.
4. Enhancing financial inclusion while adhering to religious principles.
5. Identifying and mitigating risks to safeguard social impact investments.
6. Promoting digitalization and impact evaluation to strengthen accountability mechanisms.

The participants shared insights on blended financing models, public-private partnerships, and fostering microfinance initiatives. Proposals were made to ensure a comprehensive regulatory framework that encourages private sector innovation and safeguards investments.

The Finance Minister appreciated the commitment and contributions of all stakeholders and directed accelerated efforts to finalize the proposed policy framework. He reiterated the government’s resolve to support initiatives that foster inclusive growth, sustainable development, and community welfare while empowering the private sector to take the lead in driving meaningful social impact.

Some of the key policy and economic Developments:

- Inflation Under Control: The decline in inflation is a welcome relief for the masses. To ensure prices remain affordable, the Finance Minister, heading the ECC, has initiated a practice to regularly monitor prices of basic products and commodities. This timely monitoring enables the government to take effective actions, making policies more impactful and beneficial to the people.

- Smuggling Curbed: The government has taken decisive action against smuggled petroleum products, scrutinizing thousands of petrol pumps and shutting down hundreds involved in the illicit trade. This crackdown has resulted in a historic growth in documented sales, supporting economic activity and boosting revenue.

- Illegal Tobacco Tackled: The government is actively working to shut down smuggled and illegal tobacco sales, particularly in informal markets and bazars. This effort aims to curb the illicit trade, which will have a positive impact on the economy and public health.

- Record Remittances: According to the SBP Governor, remittances are expected to reach historic levels of $35 billion in FY25, with an average of $2.9 billion per month so far. This significant influx of foreign exchange will strengthen reserves, providing a much-needed boost to the economy.

- Savings Made Easy: The SBP is set to launch a new platform, InvestPak, allowing individuals and corporates to invest directly in government securities. By bypassing banks, investors can earn better returns, encouraging a culture of savings and investment in the economy.

- Imported RM Conversion: There has been a notable shift towards localization of imported raw materials, with top FMCGs in Pakistan sourcing more materials locally. This import substitution has resulted in a significant reduction in imports, with volumes rising and only 35% of materials now sourced through imports. This trend has contributed to stable forex reserves, currency stability, and overall external de-risking of the economy.

- For instance, if 70% of the raw material was being sourced through imports earlier, it's now down to around 35%. This import-substitution could be one of the key reasons why imports are not rising as such (4% in 5M) while exports have shown consistent growth (13% in 5M), resulting in better forex reserves, currency stability and overall external de-risking of the economy.

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, attended virtually the 1st Workshop on “Implementation Management” organized by the Kingdom of Saudi Arabia (KSA). This workshop marks the first in a series of three, with subsequent sessions focusing on Digital Transformation and Social Transformation respectively. The event was facilitated by the Special Investment Facilitation Council (SIFC) as part of ongoing efforts to strengthen Pakistan-Saudi economic collaboration.

The workshop, titled “Saudi-Pak Economic Collaboration Taskforce - Pakistan Transformation,” was attended by senior government officials, including Mr. Rana Ehsan, the Prime Minister’s Coordinator; Mr. Salman Ahmed, Ambassador at Large; Mr. Khurram Shehzad, Advisor to the Finance Minister; all Federal Secretaries; senior government officers from the federal government; and representatives from provincial governments as well.

Addressing the participants, the Finance Minister highlighted the importance of learning from KSA’s Vision 2030 model, an exemplary model of robust implementation strategies. Highlighting the focus on ”People, Process, and Technology”, he emphasized the need to adopt practices that ensure successful transformation outcomes while considering Pakistan’s unique socio-economic context.

The Minister underscored the necessity of policy continuity as a cornerstone for sustainable progress, drawing attention to the concept of “irreversibility” in reforms—a key element in Saudi Arabia’s success story. “Pakistan has often faltered in ensuring policy continuity. The lesson we must take from Saudi Arabia is the importance of irreversibility in transformation initiatives,” he remarked.

The Minister also acknowledged the potential for challenges, noting that not every aspect of Saudi Arabia’s transformation model could be replicated in Pakistan. However, he affirmed that setbacks are inevitable in the pursuit of meaningful progress, emphasizing that learning through failures is an integral part of success. “To ensure success, reforms must not only be implemented but also institutionalized, making them difficult to reverse,” he added.

The workshop featured a comprehensive presentation by Mr. Yahya Bin Laden, who elaborated on Saudi Arabia’s Vision 2030’s approach to developing strategic objectives and converting them into measurable outcomes through meticulous implementation processes. Key principles of their approach include:
• Translating strategic objectives into measurable outcomes.
• Establishing clear accountability mechanisms.
• Focusing on sustainability and irreversibility to ensure lasting impact.

Mr. Bin Laden also elaborated on KSA’s implementation phases, including creating quick wins to build momentum, addressing structural challenges, and ensuring continuous improvement through data-driven decision-making and stakeholder engagement. His insights provided a valuable framework for participants to consider while shaping Pakistan’s transformation journey.

The workshop concluded by reaffirming Pakistan’s commitment to leveraging international best practices, fostering collaboration with the Kingdom of Saudi Arabia, and driving forward the economic and social transformation agenda.

The workshop serves as a significant step in the ongoing collaboration between Pakistan and Saudi Arabia to enhance economic ties and share best practices for governance and transformation.

Inflation significantly slowing down, with relieving impacts on poor and masses as Food inflation actually declined in Nov-24, followed by higher potential for rate cuts and its positive outcomes for businesses, industries and the government debt servicing and the overall fiscal balances.

Key latest macro indicators - update

- CPI Inflation at 78-month/6.5 years low, with Food inflation on the decline.

- PIA and another private sector Pakistani airline get re-entry/access to Europe.

- Pakistan Trade Deficit for Nov-24 at $1.6bn, down 19% YoY.

- Exports consistently up 9% YoY, Imports down 3% YoY, in Nov-24.

- With $3bn expected in remittances, Nov-24 should also see Current Account Surplus.

- With monthly Trade Deficit down, total 5MFY25 Trade Deficit stands at $8.7bn, down 7% YoY.

- Reserves at 33-month high, with import cover at 2.55 months.

- KIBOR (1yr) further below 12% after significant decline in inflation figures.

- PKR/US$ parity improved to 277.9.

- Oil prices down 1.5%: Brent at 72.5, WTI $68.8 (currently).

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has reiterated Pakistan’s commitment to ensuring a smooth and successful completion of the 37-month IMF programme described by him as Pakistan’s own programme of macro-economic reforms and structural adjustments funded and supported by the Fund.

The government of Pakistan under Prime Minister Shehbaz Sharif is very clear that the trust and credibility we have regained over the last 14 months, must be maintained to lay the path for an inclusive and sustainable growth, he said while talking to IMF’s new Resident Representative for Pakistan, Mr. Mahir Binici who called on the Minister at Finance Division today. Secretary Finance was also present.

The Minister extended a formal welcome to Mr. Mahir Binici on his assignment in Pakistan and assured him full support for carrying out his official responsibilities and a smooth day-to-day consultation with the government of Pakistan.

Mr. Mahir reciprocated the sentiment and committed himself to working closely with the Government of Pakistan for ensuring a successful completion of the IMF programme.

A meeting of the National Tax Council (NTC) was held today at the Finance Division under the chairmanship of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb. The meeting brought together key federal and provincial stakeholders to discuss critical matters related to tax reforms and harmonization.

The meeting was held in the context of the recently signed National Fiscal Pact between the Federation and the Provinces, emphasizing the need for realizing the full tax potential from under-taxed sectors, particularly real estate, property, and agricultural income.

The meeting was attended by Mr. Ali Parvez Malik, the Minister of State for Finance & Revenue; Mian Mujtaba Shuja-ur-Rehman, the Finance Minister of Punjab; Mr. Muzzamil Aslam, the Finance Minister of KPK; Mir Shoib Nausherwani, the Finance Minister of Balochistan; Chairman FBR, Chairmans of Provincial Revenue Boards, and the Federal and Provincial Finance Secretaries. Additionally, experts from the World Bank and other senior officials from Finance Division and provincial finance departments were also present.

The agenda of the meeting focused on fostering collaboration between federal and provincial authorities to enhance tax systems, improve compliance, and boost revenue collection. Key discussions revolved around:
1. Data Sharing and Tax Digitization: Strengthening information-sharing mechanisms between FBR and provincial revenue authorities, leveraging advanced tools for data analysis, and implementing digital solutions to streamline tax collection.
2. ⁠Harmonization of GST: Advancing efforts to harmonize the General Sales Tax (GST) across provinces and transitioning to a unified tax portal for better efficiency and transparency.
3. ⁠Provincial Tax Reforms: Reviewing measures to enhance agricultural income tax and property taxation, ensuring alignment with federal policies while addressing existing challenges.
4. ⁠Broader Tax Base: Exploring strategies to transition GST on services to a broader framework, aligning with international best practices to minimize ambiguities and improve administration.

The Council emphasized the importance of cohesive policy implementation, capacity building, and robust stakeholder engagement to achieve sustainable reform goals. Participants acknowledged the potential of these measures to support national fiscal stability and promote equitable growth.

The Federal Minister for Finance and Revenue reiterated the government’s commitment to fostering collaboration among all stakeholders for a unified and efficient tax framework. The meeting concluded with actionable steps to advance the discussed reforms in a timely manner.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division today.

The meeting was attended by the Minister for Planning, Development and Special Initiatives, Mr. Ahsan Iqbal Chaudhry; Minister for Commerce, Mr. Jam Kamal Khan; Minister for Economic Affairs, Mr. Ahad Khan Cheema; Minister for Housing and Works, Mian Riaz Hussain Pirzada; Minister for Science and Technology, Dr. Khalid Maqbool Siddiqui; Governor State Bank of Pakistan (SBP); Executive Director Securities and Exchange Commission of Pakistan (SECP); Federal Secretaries; and senior officers from the Finance Division.

The Committee reviewed a summary from the Cabinet Division regarding the reconstitution of the Board of Directors of the Printing Corporation of Pakistan (PCP). The Board, previously composed solely of ex-officio members, was required to include a majority of independent directors in accordance with the SOEs Ownership and Management Policy 2023. After detailed discussions, the CCoSOEs approved the new composition of the board, which includes 5 independent directors, as recommended.

A summary from the Ministry of National Food Security and Research was considered, concerning the appointment of independent directors for two vacant positions on the Board of the Livestock and Dairy Development Board (LDDB). The Committee approved the proposal.

The Committee also reviewed the summary of the Ministry of Railways regarding the reconstitution of Boards of Directors (BoDs) of four Railway SOEs. The recommendations of the Board Nomination Committee (BNC) for the reconstitution of BoDs of Pakistan Railways Advisory and Consultancy Services (PRACS), Pakistan Railways Freight Transportation Company (PRFTC), Railways Estate Development and Marketing Company (REDAMCO), and Railways Construction Pakistan Limited (RAILCOP) were approved. These included recommendations on both ex-officio and independent directors.

The Committee then reviewed a summary from the Ministry of Overseas Pakistanis and Human Resource Development regarding the reconstitution of the Board of Governors of the Overseas Pakistanis’ Foundation (OPF). It was recommended to include two independent members on the Board, and the proposal was approved.

A summary from the Ministry of National Food Security and Research was presented regarding the appointment of independent directors on the Board of Directors of the Fisheries Development Board (FDB). The Committee approved the nomination of 6 independent directors.

The Ministry of National Food Security and Research also submitted a summary for the approval of the Board of Directors of the Pakistan Cotton Standards Institute (PCSI). The CCoSOEs approved the appointment of 9 independent directors as recommended.

In addition, the Committee reviewed a summary from the Ministry of Finance regarding the State-Owned Enterprises’ (SOEs) financial performance for the first six months of the Financial Year 2024. Discussions focused on financial performance, business plan analysis, risk analysis, corporate governance, and compliance. A presentation on these matters was delivered by the Finance Secretary.

The Committee concluded the meeting by reviewing the implementation of previous decisions made by the CCoSOEs to ensure compliance. The presentation was given by Director General Central Monitoring Unit (CMU) of the Finance Division.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with a delegation from the American Business Council (ABC) led by Mr. Kamran Ataullah Khan, President of ABC and Country Manager/CEO of Dupont.

The delegation included Ms. Tushna Patel, Vice President ABC and Executive Director AICT; Syed Khurram Shah, Member of the Executive Committee and Executive Director PepsiCo; Mr. Adnan Shafi, Member of the Executive Committee and CEO of PriceOye Technologies; Mr. Asif Ahmed, General Manager and Technology Leader at IBM; and Brigadier (Retd.) Tariq Saeed, Government Relations Advisor at Cargill.

During the meeting, the delegation discussed the potential for fostering economic collaboration between Pakistan and the United States, emphasizing the need to create a conducive business environment for foreign investment. The delegation briefed the Minister on the issues and challenges faced by the business community, highlighting areas that require policy intervention to foster a more favorable business environment. They also highlighted opportunities for growth in sectors such as technology, agriculture, and consumer goods, underlining the contributions of ABC member companies to Pakistan’s economic development.

Senator Muhammad Aurangzeb appreciated the efforts of the American Business Council in strengthening bilateral economic ties and welcomed the recommendations shared by the delegation. He assured the government’s full support in facilitating foreign investors and resolving their issues and reaffirmed his resolve to make Pakistan an attractive business and export hub for the international markets.

The Minister also apprised the delegation about the government’s comprehensive structural reforms agenda, reaffirming its commitment to expanding the tax base, addressing economic leakages, and ensuring a complete transformation of the tax authority. He emphasized that no exemptions would be granted to any segment of the economy, underscoring that the country is already progressing in the right direction in these areas.

The Minister concluded the meeting by emphasizing the government’s determination to implement reforms aimed at ensuring economic stability, enhancing the ease of doing business, and promoting sustainable growth.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with a delegation of the METRO AG Germany that called on the Minister at Finance Division today.

The delegation was led by Mr. Atila Yenisen, Executive Vice President METRO AG Germany, and accompanied by Mr. Alfred Graannas, Ambassador of the Federal Republic of Germany to Pakistan. Senior officers of the Finance Division and FBR also attended the meeting.

During the meeting, Senator Muhammad Aurangzeb welcomed the delegation and briefed them on the ongoing macroeconomic reforms and their positive impact on the stability and future economic growth of the economy.

The Minister also highlighted the significant drop in inflation and the declining interest rate leading to a positive surge in the overall business and economic activity. He said the country’s foreign exchange reserves had also risen from two weeks of import cover to two and a half month of import cover, paving the way for a stable exchange rate and allowing for repatriation of profits and dividends to foreign investors.

Earlier, Mr. Atila Yenisen shared with the Minister a brief profile of their business and investment in Pakistan. He said the METRO AG Germany now operated 10 stores in five Pakistani cities, employing over 2000 local staff and benefiting nearly 10,000 associated clients. He said his Group had expanded its business in Pakistan over the years and had also contributed to documentation of economy and boosted Pakistan’s exports by importing over €10 million worth of Pakistani home textiles and other products for their overseas customers on annual basis.

The IMF program is proceeding smoothly, with no disruptions, as the Government of Pakistan remains fully committed to meeting all the conditionalities and ensuring the successful completion of the 37-month program in close coordination with the IMF staff.

The Ministry of Finance reaffirmed that the Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has consistently emphasized upon the government’s continued commitment to macroeconomic reforms.

In a recent briefing to the National Assembly Standing Committee on Finance, the Minister reiterated that adhering to the IMF program is critical for achieving lasting macroeconomic stability.

Any speculation regarding “hiccups” in the program’s implementation is based on one’s subjective interpretations and lacks credible evidence.

The government remains focused on maintaining economic stability and fulfilling all obligations under the IMF program with diligence and transparency, aiming to lay the foundation for stronger, sustainable, and inclusive growth.

Federal Minister for Finance and Revenue chaired a meeting with Ms. Melinda Bohannaon, Director General for Humanitarian and Development at the UK’s Foreign, Commonwealth & Development Office (FCDO). Ms. Bohannaon was accompanied by Ms. Jo Moir, Development Director, and Mr. Louie Dane, Senior Economist. Senior officers from Finance Division also attended the meeting.

During the meeting, the Federal Minister apprised the delegation of the government’s stabilization and structural reforms program. He outlined key initiatives, including the privatization agenda, rightsizing of the federal government, pension reforms, and reforms in state-owned enterprises (SOEs). He highlighted that the quarter 1 tax revenues (YOY) increased by 25.6% in FY 25.

Ms. Bohannaon appreciated the government’s comprehensive reforms program and assured the full support to FCDO.

The Federal Minister further shared details about the upcoming ten year Country Partnership Framework with the World Bank (WB), noting that Pakistan will be the first country to enter such a framework. He emphasized that the framework will address existential challenges, including population growth, child stunting and climate change, underscoring the government’s commitment to sustainable development.

Both the Minister and Ms. Bohannaon agreed on the importance of adopting a responsive and proactive approach to reforms. In the end, the minister also emphasized the need to stay the course to ensure that the reform initiatives achieve lasting impact and contribute to Pakistan’s long-term economic and social development.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the Advisory Committee on Release of IMT Spectrum for Improvement of Next Generation Mobile Broadband Services in Pakistan at the Finance Division today.

The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Information Technology and Telecommunication of Pakistan Shaza Fatima Khawaja (virtual), Chairman PTA, Secretary Ministry of Information Technology, Secretary Ministry of Law and senior officers from concerned ministries and departments.

The meeting discussed various issues and reviewed the progress of work done by the US-based consultant firm NERA hired by the PTA as per PPRA Rules / EPADS in November 2024 to study and assess the Pakistan market, undertake consultation with stakeholders and prepare policy recommendations regarding sector reforms and a roadmap for a successful spectrum auction by April next year.

Finance Minister Senator Muhammad Aurangzeb highlighted the importance of digital economy and digital integration as a critical component of the economic transformation of the country. He said the government was determined to enhance connectivity and improve digital infrastructure to ensure mass adoption of emerging digital technologies and innovative applications for cross-sector socio-economic development, transformation of economic activities and achievement of sustainable development goals.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a special meeting of the Economic Coordination Committee (ECC) of the Cabinet held at Finance Division, today.

The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Planning, Development & Special Initiatives Mr. Ahsan Iqbal, Minister for Commerce Mr. Jam Kamal Khan, Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik (virtual), federal secretaries, and senior officers from concerned ministries and departments.

The meeting reviewed the implementation status of various earlier policy decisions of the ECC concerning matters related to finance, interior, industries and production, inter-provincial coordination, housing and works, food security and research, power, national health services regulation and coordination.

The ECC was briefed on the overall implementation status of its past decisions followed by separate presentations by the relevant ministries on the current status of the issues pending with them and the steps taken and required to get a closure on them.

The ECC noted with concern the delays in the implementation of its decisions and directed the concerned ministries to improve their coordination and work with stakeholder ministries and divisions proactively through a proper escalation mechanism to ensure a timely compliance and completion of the tasks and responsibilities assigned to them for implementation of the ECC’s decisions.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with a delegation of the International Accounting Standards Board (IASB) led by Dr. Andreas, Chairman IASB. The delegation included Mr. Jianqiao Lu, Member IASB, Mr. Farukh Rehman, President of the Institute of Chartered Accountants of Pakistan (ICAP), and Mr. Rana Usman Khan, Chairman of the Asia-Oceania Accounting Standards Group. Mr. Ashfaq Tola, Chairman of the Reforms and Resource Mobilization Commission of Pakistan (RRMC) and senior officers from the Finance Division also attended the meeting.

The Finance Minister highlighted the government’s comprehensive policy framework aimed at enhancing tax revenues through improved documentation and financial transparency. He emphasized the importance of standardizing financial regimes to align with global practices, which are crucial for fostering investor confidence, both domestic and international. He reiterated the government’s commitment to ensuring policy continuity to create a conducive environment for sustainable economic growth.

Dr. Andreas acknowledged Pakistan’s leadership in adopting international accounting standards and commended the country for being an early follower of global practices. He expressed appreciation for the support provided by ICAP in advancing these efforts, emphasizing the role of professional organizations in promoting financial transparency and capacity building.

The Minister stressed that transparency and standardization are essential to attract investment and build confidence in Pakistan’s economic framework. The participants discussed the challenges and opportunities associated with the implementation of International Financial Reporting Standards (IFRS) in Pakistan. Mr. Farukh Rehman and Mr. Rana Usman Khan shared insights into how ICAP and the Asia-Oceania Accounting Standards Group are contributing to strengthening financial reporting systems.

The meeting concluded with a mutual commitment to further strengthen Pakistan’s financial documentation and reporting practices in line with international standards.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, held a meeting with Mr. Najy Benhassine, Country Director of the World Bank, and his team at the Finance Division today. The meeting was also attended by the Finance Secretary and senior officers of the Finance Division.

During the meeting, the Federal Minister highlighted the importance of collaboration with the World Bank to support Pakistan’s economic reforms and development agenda. He appreciated the World Bank’s financial and technical assistance across various sectors and reiterated the government’s commitment to fiscal discipline, sustainable growth, and efficient resource utilization.

Discussions focused on the establishment of a robust and transparent tax policy framework to enhance revenue mobilization and improve compliance while ensuring equitable taxation. The World Bank team also offered technical assistance to streamline the budget-making process, adopting modern practices to improve transparency and accountability in public financial management, an effective debt management mechanism to ensure fiscal sustainability and reduce risks. Issues related to Agricultural Income Tax Regime and GST harmonisation in coordination with provinces and enhanced focus on active role of National Tax Council also came under discussion.

Mr. Najy Benhassine appreciated the government’s reform initiatives and assured continued support from the World Bank in key areas identified during the discussions. He reiterated the World Bank’s commitment to assisting Pakistan in addressing economic challenges and achieving its developmental objectives.

The Finance Minister expressed gratitude for the World Bank’s support and reaffirmed the government’s resolve to implement reforms aimed at sustainable economic progress.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet held at Finance Division, today.

The meeting was attended by Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Planning, Development & Special Initiatives Mr. Ahsan Iqbal, Minister for Commerce Mr. Jam Kamal Khan (virtual), Economic Affairs Mr. Ahad Khan Cheema (virtual), Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik, federal secretaries, and senior officers from concerned ministries and departments.

The ECC considered proposal submitted by the Ministry of Energy (Power Division) regarding a winter demand initiative for the industrial, domestic (ToU and non-ToU consumers exceeding 200 units, commercial and general services consumers of discos and K-Electric to enable optimum use of system generation capacity besides reducing gas demand due to shifting of favourabe demand towards electricity.

It was proposed that under the initiative, a tariff of 26.07 Rs/kWh shall be charged to all eligible consumers on the respective incremental consumption, above the benchmark consumption in the corresponding months. The initiative shall remain applicable for a three-month billing period effective from December 2024 to February 2024. The benchmark consumption will be the higher of either the relevant month’s consumption in FY2024 or the historical consumption over the past 3 years for the relevant months, based on a formula and terms and conditions laid before the ECC.

The ECC discussed the proposal and approved it, calling the subsidy-neutral interim relief initiative worked out by the Power Division as being timely and relevant in view of recent surge in electricity tariffs and the reduced demand across various consumer categories.

The ECC also considered a proposal submitted by National Disaster Management Authority (NDMA) for transfer of Rs 3.140 billion balances of erstwhile Emergency Relief Cell (ERC) into NDMA Fund to carry out its inland as well as overseas rescue and relief operations in line with the statutory mandate of the Authority.

The proposal was discussed and approved with the proviso that since the balances in the ERC were made up of public donations and were granted for the purpose of relief, rescue and rehabilitation of floods and earthquake victims, NDMA would spend these balances for the stated purpose.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Henny de Vries, Ambassador of the Kingdom of the Netherlands to Pakistan, who called on the Minister at Finance Division today to discuss matters of mutual interest and explore ways for further strengthening the existing ties between Pakistan and The Netherlands.

During the meeting, various aspects of the longstanding friendship and bilateral cooperation between Pakistan and the Netherlands were discussed and priority areas like mining, IT, oil and gas, agriculture, dairy, and farm production for further business collaborations identified.

The Minister highlighted the government’s economic plan and reform agenda for promoting economic growth and ensuring fiscal sustainability. He mentioned the economic gains achieved over the last 14 months and reiterated the government’s resolve to stay the course to move the economy on the path to sustained, export-led growth. He also highlighted the challenges faced by Pakistan on climate front, and its efforts for climate financing and building capacity to ensure climate resiliency through sustainable solutions.

Ambassador de Vries reciprocated the sentiments on strengthening bilateral ties and further expanding cooperation in various fields, including sports. She mentioned the Dutch cricket team was scheduled to visit Pakistan early next year to play matches and learn from Pakistan’s cricketing prowess. She also appreciated the ongoing structural reforms in major economic and financial sectors and assured her country’s support for Pakistan’s trade and commerce with EU.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a virtual meeting with the Governor State Bank of Pakistan and Chairman Pakistan Banks' Association (PBA) and their teams to discuss progress on financing for the priority sectors today.

Mr. Zafar Masud, Chairman of PBA, apprised the Minister on various initiatives planned by PBA for building an inclusive and sustainable financial ecosystem. He proposed that electronic warehouse receipt finance, SME index, corporate farming financing, venture capital fund for fintechs, revival of agri cooperatives and establishment of financial data exchange could be some of the potential initiatives to create a long-term impact towards a sustainable financial ecosystem. He also proposed initiatives such as fan financing, EV financing, solarization of tube-wells and markup subsidy and first loss coverage for SME financing for a short-term and more immediate impact on the system.

Mr. Jameel Ahmed, Governor State Bank of Pakistan, highlighted the progress achieved on various fronts in respect of various initiatives proposed by PBA for financing to priority sectors. He argued that some of the proposals suggested by PBA were concrete in scope and the central bank had already issued necessary notifications on regulatory side to facilitate their implementation. He also proposed a more proactive consultation between stakeholders, particularly with telecos and power companies, on initiatives requiring data collection and building scorecard for agriculture and SME sectors for sustainable financing.

Speaking on the occasion, Minister for Finance and Revenue Senator Muhammad Aurangzeb appreciated the work done by PBA and SBP for coming up with substantial initiatives and taking measures for implementing the more tangible initiatives.

He urged that initiatives with short term and immediate impact be given priority and their implementation timeframe be compressed for finalizing them by end December and hopefully rolling them out from early next year.

The Minister also assured full support for arranging necessary consultations between PBA/SBP and the stakeholder ministries, adding the Finance Division would also host a meeting of all relevant stakeholders to hear their viewpoints, and help forge a consensus on the proposed initiatives.

A delegation of the Asian Development Bank (ADB) led by Senior Director Mr. Tariq H. Niazi called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division today.

During the meeting also attended by ADB’s Country Director Ms. Emma Fan and her team in Pakistan, Mr. Tariq H. Niazi briefed the Minister on ADB’s public sector management and governance initiatives aimed at ensuing stronger macro-fiscal management and effective governance with improved policy framework and institutional capacities in the Bank’s developing member countries.

Mr. Tariq Niazi said the ADB had quite a substantial pipeline for Pakistan with significant projects planned for economic reforms and socio-economic development, particularly policy and administration reforms, digitalization of FBR, private public partnerships, climate change, policy-based guarantees, financial and budgetary support, support in poverty reduction, and technical assistance in pension reforms.

Senator Muhammad Aurangzeb lauded the ADB’s financial and technical assistance provided to Pakistan over the years. He said the bank’s priority areas of assistance were aligned with Pakistan’s development needs. He welcomed the Bank’s assistance in building climate resilience and taking forward the agenda of government and pension reforms.

Ministry of Finance endorses the views of Government of the Punjab on achievement of a provincial surplus of Rs. 40 billion during Q1 for FY 2024-25. Government of the Punjab has remained one of the most important contributors to provincial surplus during recent years; for FY 2024-25 it has budgeted a provincial surplus of Rs. 630 billion as agreed with the IMF.

It is highlighted that MoF shared the updated Q1 fiscal operations figures with the IMF on 14th November, 2024. With concurrence of the Fund, MoF has updated the revised figures at its website, showing a provincial surplus of Rs. 40 billion for Punjab.

It is further pointed out that as per the revised figures agreed with the Fund; Government of Pakistan has managed to achieve a cumulative provincial surplus of Rs. 360 billion against a target of Rs. 342 billion agreed with the IMF for Q1 for FY 2024-25.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet held at Finance Division, today.

The meeting was attended by Rana Tanveer Hussain, Minister for Industries and Production; Sardar Awais Ahmad Khan Leghari, Minister for Power; Mr. Jam Kamal Khan, Minister for Commerce; Mr. Ali Pervaiz Malik, Minister of State for Finance and Revenue; the Governor, State Bank of Pakistan; the Chairman FBR, Federal Secretaries, and senior officers from concerned ministries and departments.

The ECC considered and approved a summary submitted by the Ministry of Communications (Postal Services Wing) for a Technical Supplementary Grant (TSG) amounting to Rs. 16.995 billion for clearing of verified pending liabilities of companies/agency partners of Pakistan Post Office Department.

The ECC also considered and approved a summary submitted by the Election Commission of Pakistan for a TSG of Rs. 1.317 billion in connection with Local Government (bye-elections) in Sindh, Khyber Pakhtunkhwa and Balochistan and Local Government elections in Islamabad (ICT) & Punjab province during FY 2024-25.

The ECC also took up five separate summaries submitted by the Federal Board of Revenue (FBR) as part of the FBR Transformation Plan earlier approved by the Prime Minister. The subject matters covered under the summaries included the following five key areas.

1. Enhancing FBR's Operational Expertise and Organizational Capacities.
2. Performance Management Regime for FBR Officers.
3. Capacity Building Program for FBR Officers.
4. Anti-Smuggling Measures under FBR Transformation Plan.
5. Mobility and Transit Accommodation Arrangements for FBR Officers.

The ECC had a detailed discussion on all five proposals submitted by the FBR and accorded them a principled approval with the proviso that a third-party impact evaluation of the processes and KPIs proposed under the proposals would be conducted before the next financial budget, while a similar impact evaluation of the outcomes in line with the KPIs to be drawn up under the proposals, would be carried out at the end of calendar year 2025 to see the merit of the entire exercise and its impact on the overall goal of enhanced revenue generation and resource mobilization. The ECC also decided that the Revenue Division and Finance Division would work out the mechanics, including allocation and release of budgets, under the five proposals, through joint consultation.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Mr. Nocholas Galey, Ambassador of France to Pakistan, who called on the Minister at Finance Division today.

During the meeting which was also attended by Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik and Chairman FBR Mr. Rashid Mahmood Langrial, issues of mutual interest, including bilateral cooperation and collaboration in trade, commerce and socio-economic sectors, were discussed.

Senator Muhammad Aurangzeb shared with the French Ambassador an update on the state of the economy and the significant improvement manifested in macroeconomic indicators during the last 14 months. He said the management of twin deficits, a stable currency, surging remittances and a steady rise in foreign reserves could provide Pakistan enough room to access the international capital market in coming months for enhanced institutional flows.

The Minister stressed that the wide-ranging reforms undertaken in various sectors, particularly in taxation, energy, privatization and governance, were a work in progress, and geared towards changing the DNA of the economy for an export-led growth and encouraging FDI that generates exportable surplus.

Mr. Nocholas Galey appreciated the government’s reform agenda and the macroeconomic stability achieved on various economic fronts. He also appreciated the government’s resolve to stay the course and ensure permanence to macroeconomic stability by meeting the structural benchmarks agreed with the IMF.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Mr. Keith Svendsen, Chief Executive Officer (CEO) of APM Terminals, who called on the Finance Minister at Finance Division today.

The meeting was also attended by H.E. Jakob Linulf, Ambassador of Denmark to Pakistan, Ambassador Shoaib Sarwar, Pakistan’s Ambassador to Denmark, Mr. Rene Piil Pedersen, Managing Director A.P. Moller Maersk Singapore, Mr. Ahmed Hassan, SVP of A.P. Moller Maersk Group, and Mr. Sander Riemersma, Head of Portfolio Strategy APM Terminals.

The discussion focused on the progress made as a follow-up on the signing of a Memorandum of Understanding (MoU) last month between Government of the Islamic Republic of Pakistan and Government of the Kingdom of Denmark to enhance bilateral cooperation and accelerate sustainable economic growth through promoting and enhancing green and sustainable Public-Private Partnership (PPP) investment.

Senator Muhammad Aurangzeb welcomed APM Terminals commitment to invest in Pakistan and assured full support in facilitating the Group and providing them with a level-playing and investment-friendly climate in Pakistan. Mr. Keith Svendsen briefed the Minister on APM Terminals’ business portfolio and its plans for building port infrastructure in Pakistan for enhanced revenue growth and improvement in regional trade and connectivity.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Mr. Irfan Neziroglu, Ambassador of Republic of Turkiye to Pakistan, who called on the Finance Minister at Finance Division today.

During the meeting, various aspects of historical and longstanding brotherly ties between Pakistan and Turkiye, particularly the growing bilateral cooperation in trade, investment and defense, came under discussion.

Senator Muhammad Aurangzeb welcomed Mr. Irfan Neziroglu on his diplomatic assignment in Pakistan. He highlighted the historical and fraternal bonds and the great potential for enhancing the current volume of bilateral trade between Pakistan and Türkiye.

The Minister also recalled his meeting with Mr. Mehmet Şimşek, Türkiye’s Treasury and Finance Minister, in Washngton DC on the sidelines of the World Bank Group/IMF Annual Meetings 2024 in Washington DC last month.

He said Pakistan could learn from Türkiye’s experience of power sector reforms and invited Turkish firms to enter into mutually beneficial joint ventures with Pakistani counterparts, particularly in the field of information technology and agriculture.

Mr. Irfan Neziroglu expressed his appreciation for the economic reforms and the resultant macroeconomic stability in Pakistan. He assured his full commitment and support for further strengthening the ties between both the nations' relations.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Ambassador Shoaib Sarwar, Pakistan’s Ambassador to Denmark, who called on the Finance Minister at Finance Division today.

During the meeting, various aspects of bilateral ties and ways for further enhancing cooperation and collaborations in the field of trade and commerce between Pakistan and Denmark were discussed. The Minister highlighted the role of Pakistani diaspora in the socio-economic uplift of Pakistan.

Ambassador Shoaib Sarwar apprised the Minister about the current state of bilateral ties and the scope and opportunities for further business ventures and collaborations. He also highlighted the role of Pakistani expatriates settled in Demark for strengthening bilateral ties and promoting commerce and cultural exchanges between both the countries.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has described the digitization of economy as a key requisite for driving the economic growth and mobilizing ample resources for growing development needs and ending Pakistan’s reliance on persistent financing.

He made this statement during a meeting with a delegation of Veon Group at Finance Division today. The delegation was led by Mr. Augie K. Fabela, founder and chairman of the Board Veon Group, while Mr. Kaan Terzioglu, Group CEO VEON, Ms. Marine Babayan, Group Director of Corporate Affairs VEON and Mr, Aamir Ibrahim, CEO Jazz, were also present.

During the meeting, the Minister reiterated the government’s resolve for tax reforms with a focus on people-processed technology and end-to-end digitalisation to enhance transparency, plug leakages and improve services. He described the use of data analytics as vital to have a fact-based discussion rather than harassment around FBR’s efforts for revenue generation and resource mobilisation.

He noted that for the current fiscal year, the federal tax revenues have increased by 29 per cent and 600,000 new filers have also been added to FBR’s system thus far, but we have a long way to go in our efforts to scale up the tax-to-GDP ratio, currently languishing at 8 to 9 per cent, to a decent 13.5 per cent by the time the IMF programme is completed.

Senator Muhammad Aurangzeb also reiterated the government’s resolve to move ahead with its privatisation programme, saying the government was clear that anything that could be done in the private sector, had to be handled by the private sector to allow it to drive the economy and be the engine of growth.

He pointed out that there was a real appetite amongst international investors and bilateral partners to invest in Pakistan. However, this appetite for foreign investment in Pakistan could only materialise through the private sector which had the potential, energy and drive to come up with bankable, investable projects for joint business ventures and collaborations with the foreign investors.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with outgoing Japanese Ambassador to Pakistan Mr. Mitsuhira Wada who called on the Minister at Finance Division today.

During the meeting, views on issues of mutual interest, particularly longstanding bilateral cooperation and shared values and perspectives on regional and global matters between Pakistan and Japan, were exchanged.

Mr. Mitsuhira Wada who has completed his three-year tour of duty in Pakistan, reflected on a steady growth of bilateral economic and diplomatic relations since the two countries established their diplomatic relations in 1952.

He also highlighted the positive trajectory of ongoing bilateral ties characterised by a steady promotion of trade and commerce, growing cultural, sports, youth, and educational exchanges, and re-affirmed Japan’s unwavering commitment to supporting Pakistan in mutually agreed priority sectors such as health, education, environment, water and governance.

Senator Muhammad Aurangzeb acknowledged and appreciated the longstanding bilateral cooperation, and highlighted the significance of Japan’s developmental and economic assistance and its vital role in helping Pakistan overcome economic challenges and strengthen its economy. He said both nations have significant potential to strengthen their ties through increased exchanges in trade, culture, education, and people-people interaction.

The Minister also shared with the Ambassador an update on the state of economy and the significant improvement in various macroeconomic indicators. He said the government was determined to pursue its reform agenda as staying the course without any complacency was a key to ensuring permanence to the macro-economic stability achieved during the last 14 months.

KARACHI, Nov 05 (APP):The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, highlighting the significant signs of macroeconomic recovery in national economy, on Tuesday vowed that we are seeing positive momentum and we have to take it forward for sustainable economic stability.

The finance minister expressed the views while addressing the launching ceremony of Electronic Mortgage Register by Securities and Exchange Commission of Pakistan (SECP) and later talking to media persons on the occasion.

The new unified digital mortgage servicing platform of the SECP is an advancement in the automation of mortgage registration, modification, and termination processes and it is aimed at reducing transaction time, lowering cost and accelerating service delivery besides ensuring access to accurate and up to date mortgage information to lending financial institutions.

The minister while addressing the ceremony said, “With signs of macroeconomic recovery, including interest rates around KIBOR at 13% and the Pakistan Stock Exchange gaining over 1,000 points, we are seeing positive momentum. However, there is no room for complacency.”

He emphasized the importance of the development within the broader context of Pakistan’s economic stability and said, “Our goal is to establish permanence in macroeconomic stability, and this platform’s end-to-end digitalization will lead to shorter turnaround times, benefiting the overall economy.”

He elaborated that successful digitalization was not just about technology induction but it required the commitment of people, capacity building and streamlined processes. The digitalization reduces the human intervention and leads to greater transparency and better facilitation to the people concerned, he said and added that government was working on digitalization of Federal Board of Revenue that would help curtailing the corruption and extend better facilities to tax payers.

Sharing insights from recent international engagements in Washington, Saudi Arabia, and Qatar, the Senator Aurangzeb said that our multilateral and bilateral partners were ready and willing to support the Pakistan in efforts of economic stabilization.

“With billions in investments anticipated multilaterally and bilaterally, we must be careful about what we regulate and how we regulate. Our aim is to encourage investment without regulatory overreach,” he noted.

The finance minister while responding to media queries regarding climate financing informed that positive meetings were ongoing with multilateral partners and concrete results were expected soon. He also discussed potential improvements in Pakistan’s credit ratings to ‘single B’ by S&P and Moody’s and described that rating agencies look for macroeconomic stability and it might take three to four months.

Earlier, SECP Chairman Akif Saeed, in his address, highlighted the platform’s efficiency and potential impact on transparency and said that servicing of mortgages become easier for both lenders and borrowers.

He said that SECP was planning to expand the digital capability across corporate registration and end-to-end solutions while an AI model was also under development which will further enhance processing speed and accuracy.

The new mortgage servicing platform is part of SECP’s ongoing mission to support a business-friendly environment in Pakistan, enhancing ease of doing business (EODB) and reducing administrative delays to attract local and foreign investment, ultimately contributing to macroeconomic stability, he said.

The EMR launch ceremony marking a significant move of SECP towards a fully digitalized financial ecosystem aimed at fostering economic transformation was also attended by Chairman SECP Policy Board, Mehmood Mandviwala, former governor SBP Shamshad Akhtar, finance sector members, and media representatives.

Earlier, the Finance Minister Muhammad Aurangzeb, also inaugurated Southern Regional Office of Securities and Exchange Commission of Pakistan (SECP) in Karachi. The finance minister along with Chairman SECP Akif Saeed and other senior official cut the ribbon and unveiled the plaque to inaugurate the SECP regional office at Karachi.

He visited different sections of the newly inaugurated office and directed to make the regional office fully functional at the earliest so that maximum facilities could be provided to the business community. He also assured his all-out support in the regard.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of Revenue Mobilisation, Investment and Trade Programme (REMIT) Steering Committee here today to review the status and progress on the implementation of decisions taken by the Committee in its earlier meeting with regard to revenue mobilization, investment climate, trade and macro-economy.

British High Commissioner to Pakistan, Ms Jane Marriott and senior leadership from key government ministries, including Ministry of Planning, Ministry of Finance, Ministry of Commerce, Ministry of Industries and Production, Board of Investment, FBR and REMIT’s implementing partners – World Bank, GCSI and ASI were also present.

The Committee reviewed the work done by the stakeholders in different sectors of the economy, particularly revenue mobilisation, investment climate, macroeconomic governance, trade and climate change for the purpose of strengthening macroeconomic stability and improving conditions for high and sustained inclusive growth.

Senator Muhammad Aurangzeb appreciated the overall progress of the Programme and called for a more proactive and dedicated approach on the part of different stakeholders for urgent implementation of final deliverables under the Programme.

The Minister said he would personally oversee progress in completion of various activities, outputs and outcomes of the Programme to keep it on track.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Ambassador Munir Akram, Permanent Representative of Pakistan to the United Nations, who called on the Finance Minister at Finance Division today.

During the meeting, matters related to follow-up and progress on meetings, consultations and discussions held between the Finance and Revenue Minister and stakeholders, including heads of leading financial institutions, commercial and investment banks, bilateral partners, think tanks and government officials came under discussion.

Ambassador Munir Akram highlighted Pakistan’s efforts for underscoring the need for climate justice, scaling up climate finance and trade reforms to supporting developing countries, early operationalization of the Loss & Damage Fund, implementation of the agreement to re-channel 50% of the 2021 SDR (Special Drawing Rights) allocation to development, and putting Secretary-General’s SDG (Sustainable Development Goals) Stimulus proposal into action through an inter-governmental process at the UN.

Ambassador Munir Akram also dilated upon Pakistan’s efforts for advocating a concrete time-bound roadmap for the fulfillment of the developed countries’ 0.7% of GNI ODA (Gross National Income, Official Development Assistance) commitment, establishment of a UN mechanism to facilitate public and private investment in sustainable infrastructure in developing countries, and a fair and fast debt relief and restructuring for countries in debt distress.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with a delegation of Asian Infrastructure Investment Bank (AIIB) led by Mr. Konstantin Limitovskiy, Vice President Client Region and Project Finance Global, Asian Infrastructure Investment Bank (AIIB) that called on the Finance Minister at Finance Division today.

During the meeting, the AIIB team briefed the Minister about the Bank’s portfolio investment in Pakistan, including projects initiated in the hydro power generation, building road and transport sector, urban infrastructure development, building climate resilience and dealing with adverse impacts of pandemics, conflicts and climate-induced flood disasters. The status of ongoing projects and the need for diverting the Bank’s financing from power generation to the transmission and distribution system in view of surplus capacity requiring evacuation were also discussed.

The AIIB team said the Bank views Pakistan as an important partner country, and reiterated the Bank’s commitment to supporting Pakistan in meeting its development goals and overcoming climate-related challenges through policy and budgetary support.

Speaking to the AIIB’s team, Senator Muhammad Aurangzeb acknowledged the Bank’s support for Pakistan, particularly its funding and technical assistance in dealing with natural disasters and the impacts of climate change and disaster preparedness on a long-term basis. He expressed satisfaction over the progress of AIIB projects in Pakistan and emphasized further efforts to improve the disbursement of ongoing projects.

The Minister also recalled his meeting with the President of AIIB, Mr. Jin Liqun in Washington DC last month, and mentioned his conversation with Mr. Liqun regarding Pakistan’s desire to diversify its financing base by exploring the possibility of issuing a Panda bond with AIIB anchoring the process through partial guarantee to send out a strong signal to the market.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Governor of Khyber Pakhtunkhwa Mr. Faisal Karim Kundi at the Finance Division today.

During the meeting, various issues pertaining to overall economic situation, economic and financial activities in Khyber Pakhtunkhwa, challenges and opportunities following the merger of FATA and the impact of law and order on local economy in the province, came under discussion. Measures taken at the provincial and federal level for ensuring law and order in the affected areas and providing a secure business climate in the province were also discussed.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with TPG Capital, led by Mr. Jide Olanrewaju, Partner at TPG. The meeting focused on strengthening investment ties and exploring opportunities to enhance economic growth in Pakistan.

During the meeting, Minister Aurangzeb highlighted the positive trajectory of Pakistan’s economic indicators. He pointed out the notable decline in the current account deficit, which reflects improved economic stability. The Minister also emphasized the government’s commitment to boosting exports through diversification strategies, noting that the recent efforts have resulted in a marked increase in export performance. Furthermore, he announced that inflation has decreased to single-digit levels, a testament to the government’s effective economic management.

In line with the government’s vision for sustainable economic growth, the Finance Minister discussed the ongoing structural reforms aimed at enhancing market conditions and creating a conducive environment for both domestic and foreign investments. These reforms are pivotal in attracting capital and fostering investor confidence in Pakistan’s economic landscape.

Mr. Jide Olanrewaju of TPG Capital expressed keen interest in enhancing investments in climate transition infrastructure. He underscored the importance of attracting more capital to support sustainable development initiatives within the country. This aligns with the global shift towards greener investments and highlights TPG’s commitment to responsible investing.

The Minister also informed the delegation about the recently agreed upon ten-year partnership framework with the World Bank. This strategic partnership aims to facilitate various projects that are expected to significantly contribute to the country’s economic development.

The meeting concluded with a shared commitment to collaborate on investment initiatives that align with Pakistan’s economic goals and sustainable development objectives. Minister Aurangzeb reiterated the government’s openness to engaging with international investors and emphasized the vital role that partnerships with organizations like TPG Capital play in driving economic progress.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb today held a meeting with Ms. Emma Fan, new Country Director of Asian Development Bank in Pakistan, who along with Mr. Asad Aleem, Deputy Country Director-ADB Pakistan, called on the Minister at the Finance Division today.

Senator Muhammad Aurangzeb welcomed Ms Emma Fan on her posting in Pakistan, and hoped the long-term partnership between Pakistan and ADB would grow further during her tenure and the Bank would continue to play a pivotal role in supporting Pakistan’s development agenda. The Minister also shared with her an update on the state of the economy and ongoing reforms in SOEs, taxation and energy and other sectors for improving governance, efficiency and sustainability of these sectors.

Expressing appreciation for the reforms undertaken in various sector of the economy, Ms. Emma Fan told the Minister the ADB was working on a new country partnership strategy for Pakistan, with focus on critical sectors such as climate change, economic growth and prosperity.

She briefed the Minister about ADB’s portfolio investments, its ongoing and upcoming projects in Pakistan and the Bank’s support for economic reforms, socio-economic development, poverty reduction, climate change as well as policy-based funding and budgetary support for the country.

She said the ADB had seven projects for Pakistan this year, and there were 16 projects planned for the next year as part of an extensive and meaningful partnership and collaboration with Pakistan. She also updated the Minister on projects initiated or being planned by the Bank for various sectors, including financial assistance for poverty reduction, ongoing SOE and SME reforms, support to power distribution companies for installation of smart meters at transformer and grid level, establishment of early flood warning system, and the digitalization drive in FBR.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee of the Cabinet at Finance Division, today.

The meeting was attended by Mr. Musadik Masood Malik, Minister for Petroleum; Sardar Awais Ahmad Khan Leghari, Minister for Power; Mr. Ahad Khan Cheema, Minister for Economic Affairs; the Governor, State Bank of Pakistan; the Chairman, SECP; the Chairman, Board of Investment; Federal Secretaries; and senior officers from concerned ministries and departments.

During the meeting, several key agenda items were discussed and decisions were made.

The Ministry of Information & Broadcasting (MoIB) presented a summary requesting a technical supplementary grant (TSG) of Rs. 95.822 million to settle the outstanding dues related to the 23rd Shanghai Cooperation Organization’s (SCO) Council of Heads of Government (CHG) meeting. After deliberation, the ECC directed the ministry to reappropriate the funds from its allocated budget for the fiscal year 2024-25. In case of a shortfall of funds at the end of the fiscal year, the Finance Division will allocate a technical supplementary grant as needed.

Another request from MoIB for an additional TSG of Rs. 536.1 million for crucial digital initiatives was discussed. The ECC similarly directed the Ministry to reappropriate the required amount from its FY 2024-25 budget, with the possibility of supplementary funds being allocated later, if required.

The Ministry of Industries and Production brought forward a summary regarding the Peshawar High Court’s decision on the export of sugar from Khyber Pakhtunkhwa. The Ministry emphasized that based on national data, the sugar production in Khyber Pakhtunkhwa is less than the province’s annual consumption of 0.979 million MT. The local deficit is usually met by sugar supplied from surplus-producing provinces such as Punjab and Sindh. Therefore, no sugar shortage is expected in Khyber Pakhtunkhwa, even with the current and any future exports allowed by the ECC. As a result, the ECC reiterated its earlier decision based on the provided national figures. However, the request and suggestions from the province of Khyber Pakhtunkhwa were duly noted.

The Ministry of Law and Justice presented a summary for the surrender of Rs. 151.787 million from the Ministry of Housing and Works, to be transferred to the Supreme Court of Pakistan for the repair and maintenance of its buildings. The ECC approved the transfer of these funds through a technical supplementary grant for FY 2024-25.

A summary from the Ministry of Energy (Petroleum Division) was also presented, seeking approval for the Sale Purchase Agreement (SPA) for the supply of POL products between Pakistan State Oil (PSO) and SOCAR Azerbaijan. The ECC approved the signing of the SPA.

The Ministry of Energy (Power Division) submitted the Circular Debt Management Plan for FY 2024-25. The ECC approved the plan, which aims to reduce liabilities in the power sector and enhance financial sustainability.

The Ministry of Interior requested a TSG amounting to Rs. 650.35 million to cover costs related to the SCO Summit 2024, repairs of Safe City cameras damaged during violent protests, and maintaining law and order in Islamabad. The ECC directed the ministry to reappropriate the funds from its allocated budget for FY 2024-25.

In another matter, the Ministry of Interior presented a summary seeking Rs. 2.70 billion spent on arrangements and beautification of Islamabad for the 23rd SCO Summit. Following detailed discussions, the ECC decided that the Capital Development Authority (CDA) and the Ministry of Interior should get a third-party cost and expenditure verification before bringing the summary back for further consideration.

At the end of the meeting, the ECC also reviewed the situation of price hikes in Pulses (Gram and Mash) and Chicken. The ECC showed concern upon the situation and asked NPMC to monitor the situation in consultation of Ministry of National Food Security and Research and provincial administratione to provide relief to common man at the earliest. Moreover, the ECC decided to keep reviewing the prices of essential food items in order to ensure benefits of decline in inflation may reach the common man.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet today.

The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Planning, Development & Special Initiatives Mr. Ahsan Iqbal, Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik, Governor SBP (virtual) and Chairman SECP (virtual), along with Federal Secretaries and senior officers from the concerned Ministries and Divisions.

The ECC considered a proposal from the Ministry of National Food Security & Research for allocation of domestic and imported wheat stocks of PASSCO among wheat-deficient agencies/regions for Food Year 2024-25. The ECC discussed the issue threadbare and decided that domestic and imported wheat would be allocated and released by PASSCO based on allocation ratio decided by ECC on 1st February 2024, till full disposal of imported wheat stock, and all seven wheat-deficit agencies/regions would lift the wheat as per their committed demand during the Food Year 2024-25. The ECC however directed that the wheat to be picked up by agencies/regions be tested beforehand for purpose of quality and fitness for consumption.

The ECC considered and approved a proposal from the Ministry of Interior for grant of a Technical Supplementary Grant amounting to Rs. 252.711 million against the same amount surrendered by the Ministry of Housing and Works, for allocation to Capital Development Authority to ensure uninterrupted provision of civic services at the Prime Minister’s Office (Public), Prime Minister’s Office Internal and Prime Minister’s Staff Colony.

The ECC considered and approved grant of a Technical Supplementary Grant to the tune of Rs. 1.8 billion to the Ministry of Defence for overhaul of engines of two VVIP aircraft being utilized for state duties with the President and the Prime Minister of Pakistan.

The ECC also took up and approved a proposal of Ministry of Interior for provision of Rs. 2.939 billion as Technical Supplementary Grant to Director General Immigration & Passports for purchase of two e-Passport Personalization systems and six desktop personalization machines for uninterrupted and smooth official business of the Directorate in the public interest.

The ECC also approved a proposal of the Ministry of Planning, Development & Special Initiatives for transfer of Rs. 30 billion budgeted for FY 2024-25 under the “Flood Response Emergency Housing Project”, to Finance Division as Technical Supplementary Grant for onward release to Government of Sindh as per Finance Division’s release strategy for development budget and after authorization by the Ministry of Planning, Development & Special Initiatives.

The ECC meeting also deliberated upon a summary by National Accountability Bureau for a TSG for allocation of Rs. 376 million in terms of Article 84 of the Constitution of Islamic Republic of Pakistan 1973, in favour of NAB for meeting the expenditure in terms of Recovery and Reward Rules 2002, and approved it.

A proposal by the Ministry of Commerce for allocation of TSG amounting to Rs. 226.720 million to support its trade and investment missions in China was also considered and approved by the ECC.

The Express Tribune published an article on 31st October, 2024 titled “$7 billion IMF bailout falters as economy strains” reflects a concerning misunderstanding of core economic metrics. The assertions about discrepancies in forecasts, including inflation, Large-Scale Manufacturing (LSM), and imports are faulty, based on incomplete and incorrect data. The writer’s comprehension of projected/targeted numbers of inflation and imports are flawed, different than the governments published projections. Moreover, the article overlooks critical economic trends and relies on speculative interpretations that mislead public perception.

Latest available data show that inflation, LSM, and imports are aligned with government’s projections, effectively countering any rationale for mid-year budget adjustments. Also, the forecasts of IMF on the economic indicators have been revised recently, showing convergence towards the forecasts of the Ministry of Finance.

Contrary to the article’s claim, the economic situation depicts the effectiveness of the fiscal policy and sets a way forward to fiscal sustainability. The actual CPI inflation during the first quarter remained at 9.2% against the forecast of 10.2%, a deviation of only 1%, which is not significant given the international practices and uncertain global economic environment. For instance, the IMF’s forecast for CPI inflation was 12.7% for FY2025 which is now revised as 9.5%, showing a downward revision of 3.2%. Deviations between actual and forecasted values happens to be a critical component of forecasting models employed for policy and budgetary planning.

Similarly, the forecast for LSM quarterly growth of 0.9% is expected to be met as July saw growth of 2.52%, exceeding expectations, although August experienced a temporary dip. As textile sector (with the highest weight of 18.2%) turned into positive trajectory after the contraction observed for 24 months consecutively). Further, automobile sector has also registered significant growth in the first quarter. Thus, the LSM performance appears aligned with forecasts, showing the sector’s resilience and its contribution to sustaining tax revenue targets. Furthermore, the article ignored the positive implications of receding inflation, declining policy rate, and consequent lower borrowing costs. Besides, the article’s assertion of a 1.3% growth rate in LSM in Q1 is based on incomplete data, as official figures are currently available for only two months (July and August). Concluding this partial dataset is premature and misrepresents the actual trajectory of LSM growth.

On imports, actual figures for the first quarter recorded at $14,219 million, even higher than the forecasted $14,062 million, highlighting positive implications for import-related tax collection. The IMF revised downward its import forecast by $ 3.3 billion from earlier $ 60.5 billion to $ 57.2 billion for the CFY, converging to the Government’s projection which stands at $ 57.3 billion. Moreover, the article’s import growth figure is understated. In reality, imports for Jul-Sep FY2025 grew by 15.7%, necessary to support the revival in manufacturing and production sector of the economy.

The article overlooks the importance of monthly trends and seasonality, which play a critical role in interpreting economic indicators. Monthly fluctuations are not only common, but expected, especially in an environment influenced by shifting international commodity prices. By ignoring these factors, the article fails to capture the dynamics that inform our economic projections.

The State Minister for Finance and Revenue, Mr. Ali Pervaiz Malik, visited the Competition Commission of Pakistan (CCP), underscoring the role of the Commission in checking market failure and protecting consumers from anti-competitive practices.

During his visit, Mr. Malik conveyed the Ministry’s commitment to bolstering CCP's capacity to increase its effectiveness, whether through legislative reforms, follow-up on court cases or capacity-building initiatives. Addressing CCP’s officials on Wednesday, he emphasized the need for a comprehensive review of the Competition Act to ensure it remains modern, effective, and relevant as well as to address the challenges being faced by the Commission.

“Competitiveness in markets is vital for protecting consumer interests. It also encourages new startups and attracts investments,” said Mr. Malik.

CCP Chairman, Dr. Kabir Ahmed Sidhu, briefed the Minister on Commission's role, including its functions, performance, and ongoing inquiries in important sectors of the economy. Dr. Sidhu highlighted the challenges faced by CCP, including legal obstacles.

Minister Malik pledged his full support to CCP in overcoming its challenges. He requested a detailed list of pending court cases and stay orders, to take up with the Attorney General and Law Ministry for expeditious resolution. The Minister urged Dr. Sidhu to maintain close coordination with the Finance Ministry to ensure effective vigilance of consumer interests.

The meeting was attended by CCP Members Mr. Saeed Ahmed, Mr. Salman Amin, Mr. Abdul Rashid Sheikh, Ms. Bushra Naz, and Directors Generals.

On the final day of his visit to Washington DC to participate in the Annual Meetings of the World Bank Group and IMF, Federal Minister for Finance and Revenue, Mr. Muhammad Aurangzeb, met with Mr. Andrew Torre, Regional President for VISA. He appreciated Visa's commitment to modernizing Pakistan's payments ecosystem, including by supporting domestic payment players such as 1Link and lauded Visa's work on financial inclusion and supporting entrepreneurs. He expressed satisfaction that Visa was launching the Financial Inclusion Card with Meezan Bank. Both sides agreed on the need for clients to have more routing choices and a level playing field for the processing of domestic transactions

Finance Minister met with Mr. Liao Min, Vice Minister of Finance, China. He reaffirmed the all-weather strategic cooperative partnership between Pakistan and China and thanked the Government of China for its unwavering support to Pakistan’s socio-economic development and growth, including in securing the IMF’s Extended Fund Facility (EFF). He added that Pakistan was eager to learn from the Chinese economic reforms experience. He welcomed BYD decision to introduce electric vehicles in Pakistan. He signalled the intention to launch an inaugural Panda bond in the Chinese market to diversify the financing base. He reaffirmed the commitment of the government to ensuring fool-proof security to the Chinese workers. He informed the Vice Minister that majority of Chinese companies wanted to expand their investments and increase employment opportunities in Pakistan. He requested the Chinese side to increase limits under the Currency Swap Agreement. Both sides emphasized the need for online settlement of payments and integration of the payment systems of two countries.

Mr. Mohammad Kallala, Global Head of Corporate and Investment Banking Business of Natixis, called on the Finance Minister. He briefed the Minister on the operations of the Bank and its strong presence in the infrastructure, renewables, transportation/aviation & Telecom/Tech sectors. Mr. Kallala discussed the opportunities to partner with Gulf particularly Saudi investors to provide financing/advisory for investments into Pakistan. He informed that the Bank wanted to partner with a small group of leading Pakistani companies to facilitate such investments. Both sides agreed on the need to continue further engagement in future

Mr. Karan Bhatia, Vice President and Global Head of Government Affairs and Public Policy of Google called on the Finance Minister. He provided an overview of Google’s recent work and engagements in Pakistan and their plans for deepening investment and tangible economic contributions in Pakistan. He raised issues on the regulatory/ legislative, connectivity and financial side. Finance Minister assured full support in this regard.

Finance Minister interacted with Pakistani-American tech entrepreneurs. He identified IT as one of the burgeoning sectors of the economy and informed that Pakistan ranked among top 5 countries in terms of freelancing. He highlighted the contribution of IT sector to the rising exports of the country. He further informed that digital ecosystem was being enabled through a broad range of legislative, policy, regulatory and operational initiatives. He expressed satisfaction over the outcome of his engagements with different stakeholders on the sidelines of the Annual Meetings 2024 and underlined the importance of staying the course on reforms. The event concluded with a Q&A session

Finance Minister met with the President of AIIB, Mr. Jin Liqun. He acknowledged the Bank’s support to Pakistan, particularly in dealing with the aftermath of the devastating floods of 2022. He recalled his previous visit to China where he interacted with the management of Peoples Bank of China (PBOC). He indicated that government wanted to diversify its financing base and explore the possibility of issuing a panda bond with partial credit guarantee of AIIB. He added that engaging AIIB as an anchor to support the process would send out a strong signal to the market. The option of a no-deal roadshow first followed by a deal roadshow was also discussed. He expressed satisfaction over the progress of portfolio of AIIB projects in Pakistan and further efforts to improve the disbursement of ongoing projects. On the infrastructure side, he invited AIIB to invest in N-5 (GT Road) reconstruction project and also provide support in terms of program loan for dealing with the impacts of climate change and disaster preparedness. He also welcomed the upcoming visit of Vice President (Operations) wherein issues of mutual interest would be discussed and portfolio of ongoing projects reviewed and pipeline firmed up. He invited the President to visit Pakistan which he accepted at mutually convenient dates to be decided later.

Other activities of the Finance Minister included interaction with a select group of leaders of Pakistani diaspora community where he appreciated their valuable contributions in bolstering economic, business and investment ties between Pakistan and the United States and engagement with the correspondents of Pakistani media houses in the US where he briefed them on the socio-economic developments in Pakistan and shared details of his weeklong engagements in Washington DC.

Washington DC
26 October 2024

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, attended the G-24 Ministers and Governors Meeting held in Washington DC. In his intervention, the Minister urged all development partners to work closely together to resolve the pressing issues of climate change, population growth and child stunting faced by developing countries especially Pakistan. In his statement on becoming the Second Vice Chair of G-24 Bureau during the fiscal year 2024-25, Finance Minister emphasized the need to address issues including high debt burdens on developing countries, need for climate action and greater representation of developing countries in the Bretton Woods institutions.

Finance Minister met with a delegation of CitiBank led by Mr. Jay Collins, Vice Chair of Public Sector. He briefed the bank team about the reforms being undertaken in the areas of taxation, energy, SEOs, pensions and right sizing of the government and outlined the long-term Road-to-Market strategy. He said that government would explore the option of tapping into the international capital markets in due course.

Finance Minister met with Mr. Makhtar Diop, Managing Director of the International Finance Corporation (IFC). Issues relating to expedited evaluation of bids for Islamabad airport, Diversified Payment Rights (DPR), raising local currency through offshore bond issuance, privatization of DISCOs and HBFC came under discussion. He thanked IFC for its advisory and financial support to Pakistan and requested the Managing Director to deploy innovative financing models and support private investments in agribusiness, healthcare, water, transportation and digital infrastructure in Pakistan. He outlined the government priorities of modernizing electricity transmission and distribution networks, which could benefit from enhanced IFC support and technical assistance. He also appreciated IFC’s continued assistance to Pakistan, including in PIA’s privatization which the Government expected to finalize by the end of the year. In the end, he extended the invitation to Mr. Diop to visit Pakistan.

Finance Minister participated in the V20 Ministerial Dialogue on the theme “Realizing Climate Prosperity through Financial Reform, Debt Solutions, and Affordable Capital”. In his intervention, he informed that Pakistan was developing its Climate Prosperity Plan. He emphasized the need to reform global finance to “make debt work for the climate” and called upon Multilateral Development Banks (MDBs) to expand grant opportunities and concessional financing windows. He also endorsed the official recognition of the V20 by the International Monetary Fund (IMF) as an official intergovernmental group.

Finance Minister met with his Saudi counterpart, H.E Mohammed Aljadaan, on the sidelines of the World Bank-IMF Annual Meetings in Washington DC, today. Appreciating the historical, fraternal bonds between Pakistan and the Kingdom of Saudi Arabia, the two Ministers resolved to further deepen mutually beneficial economic ties, enhance bilateral trade, and facilitate investments in key sectors. The Saudi Minister shared his experience of reforms in the energy sector. Both sides agreed to advance cooperation in areas of mutual interest.

Finance Minister had a fireside chat with Mr. Jihad Azour, Director Middle East and Central Asia Department (MCD), IMF in the forum “Governor Talks- Pakistan From Stabilization to Sustainable Growth via Structural Reforms”, He highlighted policy actions taken by the government to regain economic stability, increase tax revenues, make taxation in Pakistan fairer and more efficient and tackle deep-seated-structural distortions to move the country from stabilization to growth.

Finance Minister held a meeting with H.E Mr. Mehmet Şimşek, Türkiye’s Treasury and Finance Minister. Recalling the historical, fraternal bonds and muti-faceted cooperation between Pakistan and Türkiye, Finance Minister stated that there existed great potential to enhance the current volume of bilateral trade. Finance Minister said that Pakistan could learn from Türkiye’s experience of power sector reforms and invited Turkish firms to enter into mutually beneficial JVs with Pakistani counterparts.

Finance Minister met with Mr. Brent Neiman, Assistant Secretary for International Finance of the US Treasury Department in Washington DC. He briefed Mr. Neiman about measures to broaden the tax base, align provincial AIT regimes with federal personal/ corporate income tax rates, rationalize subsidies, reform the energy sector, overhaul SOEs and build climate resilience through the effective implementation of the C-PIMA Action Plan and enhanced climate adaptation investments. He also thanked US for its support to Pakistan in securing the IMF’s Extended Fund Facility. Mr. Neiman appreciated the Government of Pakistan’s commitment to wide-ranging structural reforms resulting in reduction of fiscal and current account deficits and reduced inflation. The two sides discussed ways to strengthen cooperation between the financial sectors of Pakistan and the United States.

Other engagements of the Finance Minister included media interview with Bloomberg and interaction with representatives of the Bank-Fund Staff Association of Pakistanis.

The Pakistan delegation held a meeting with the representatives of Alvarez & Marsal Sovereign Advisory Services, comprising Dr. Reza Baqir, Managing Director and Global Practice Leader, Mr. Peter Briggs, Division Executive for Sovereign Advisory Services, and Mr. Thibaud Fourcade. Alvarez & Marsal team congratulated Pakistan on the successful conclusion of the Extended Fund Facility (EFF) with IMF and discussed various approaches through which Pakistan could access the international capital markets and external creditors. The team outlined the steps needed for the country to chart an accelerated path to capital markets following a well-sequenced strategy.

Mr. Muhammad Aurangzeb, Federal Minister for Finance & Revenue, is leading Pakistan delegation to the Annual Meetings of the World Bank Group and International Monetary Fund (IMF), being held in Washington DC from 21-26 October 2024. Other delegates include Mr. Imdad Ullah Bosal, Finance Secretary, Dr. Kazim Niaz, Secretary Economic Affairs, and Mr. Jameel Ahmad, Governor, State Bank of Pakistan.

Federal Finance and Revenue Minister Senator Muhammad Aurangzeb has reiterated the government’s resolve to carry on with broad-based reforms on taxation, energy and SOE fronts.

He said the government was committed to raising the country’s tax to GDP ratio to 13.5 per cent by plugging leakages and bringing untaxed sectors in the net.

He said the government under Prime Minister Shehbaz Sharif had approved a comprehensive transformation plan for FBR and brought in experts on the Board of PRAL (IT arm of FBR). The Minister was talking to U.S. Ambassador Donald Blome who called on him at the Finance Division today. During the meeting, matters of mutual interest and bilateral cooperation were discussed.

Senator Muhammad Aurangzeb called the macroeconomic reforms “work in progress” and pointed to more serious challenges of climate change and child stunting which threatened to perpetuate inequalities and disrupt the pace of economic growth and stability in Pakistan over the medium to long term. He said Pakistan looked forward to building climate resilience through adaptation reforms and averting malnutrition with the technical and financial support of development partners for ensuring holistic development goals.

U.S. Ambassador Donald Blome appreciated Pakistan’s efforts for improving macroeconomic stability and lauded the government for initiating challenging and bold reforms, particularly in the taxation and energy sectors. He reaffirmed his commitment to enhancing bilateral cooperation in technical and development initiatives, and promoting high-quality US investment for economic growth of Pakistan.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division today.

The Committee considered a proposal by the Ministry of Planning, Development and Special Initiatives for categorization of the National Disaster Risk Management Fund, a non-profit public owned organization working for enhancing resilience to natural disasters, as a strategic State-Owned Enterprise (SOE) under Paragraph 9 of the SOEs (Ownership and Management) Policy, 2023. The Cabinet Committee reviewed the proposal and decided to declare the entity as an essential SOE.

The Committee also considered and approved two separate proposals submitted by the Industries and Production Division for appointment on the Board of Directors of the Pakistan Industrial Development Corporation (PIDC) as well as the Board of Directors of the Pakistan Steel Fabricating Company Limited.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet today.

The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Economic Affairs Mr. Ahad Khan Cheema, Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik, Governor of the State Bank of Pakistan (SBP), Chairman of the Securities and Exchange Commission of Pakistan (SECP) along with Federal Secretaries and senior officers from the concerned Ministries and Divisions.

The ECC discussed a summary submitted by the Ministry of Industries and Production seeking permission for a further export of 500,000 metric tonnes of sugar in view of availability of sufficient surplus stocks even after catering for the proposed and ongoing exports, the requirement for remaining two months of the ongoing crushing year, as well as maintenance of strategic reserves.

The meeting was told that as per data provided by Provinces and FBR, existing stock of sugar stood at 2.054 Million MT as on 30.09.2024, while total consumption during the last ten months of current crushing year 2023-24 staying at 5.456 Million MT. It was further submitted that in the next 2 months, expected offtake was likely to stand at around 0.900 Million MT (based on FBR reported offtake for September i.e 0.450 Million MT). Therefore, after taking into account 0.140 Million MT quantity yet to be exported as per earlier ECC decisions, remaining expected stocks would be 1.014 Million MT as on 30th November 2024. Similarly, after earmarking one month’s off-take i.e 0.450 Million MT as strategic reserve, a surplus of 0.564 Million MT would still remain available.

The ECC had a threadbare discussion on the proposal and in light of the recommendation from relevant stakeholders and Ministries, approved the proposal for an additional export of 0.500 Million MT of surplus sugar with the same terms and conditions as allowed by ECC in its decision on 20th September 2024 with the following modifications/insertions:

• This permission shall be subject to the provision of an undertaking by PSMA that their mills will commence production by 21st November, 2024 for the next crop year and export quota of any non-compliant mill will be revoked;
• Exporters shall ensure that the consignments are shipped within ninety (90) days of allocation of quota by the respective Cane Commissioners; and
• This permission may be revoked by SAB at any time in the interest of stability of the domestic market and maintenance of retail price.

The ECC further directed that the Cabinet Committee on Monitoring Sugar Exports, already constituted vide Cabinet Division’s Notification dated 25th & 26th June, 2024 and 13th September, 2024, would continue to regularly monitor and update the Cabinet on demand, supply and price situation of sugar in the country, including in the case of export of 0.500 MMT of sugar as well.

The ECC also discussed and approved a summary submitted by the Ministry of Energy (Power Division) seeking a compensation package for the deceased Chinese employees of Port Qasim Electric Power Company (Private) Limited.

Press Note - 10th October, 2024

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has reaffirmed the government’s commitment to implementing its reform agenda and meeting structural benchmarks to lend permanence to macroeconomic stability, promote inclusive, sustainable growth and end Pakistan’s reliance on external borrowing.

He made it clear that the only way this goal could be successfully achieved was by changing the DNA of the economy by moving it from away its usual boom-and-bust cycles and leading it to a sustained export-led growth encouraging investment and FDI flows into export-oriented sectors and getting access back to the international capital market.

He made this observation during a meeting with a high-level delegation from the Asian Development Bank that called on the Minister at Finance Division today. The visiting delegation was led by Mr. Donald Bobiash, Executive Director of Asian Development Bank and Mr. Shigeo Shimizu, Executive Director Asian Development Bank while Mr. Yong Ye, Country Director Asian Development Bank and other senior officers from the ADB and Finance Division were also present.

Senator Muhammad Auragzeb welcomed the delegation and shared with them a roundup of ongoing structural reforms and the resultant growth trajectory and improvement in key economic indicators.

He particularly highlighted an efficient management of twin deficits backed by buoyant remittances and healthy exports, a steep fall in inflation from a 38 pc high of last year to a 44-month low of 6.9 pc in September last, and reduction in the policy rate by 450 bps with expectations of more cuts in coming months.

The Minister also mentioned the stability in exchange rate, growth in forex reserves to $10.7 billion after the signing of the IMF accord and the stock exchange index crossing 85,000 figure to indicate a growing business confidence and favourable investment climate leading to further institutional flows into the country.

He credited Prime Minister Shehbaz Sharif with personally overseeing and spearheading the implementation of wide-ranging structural reforms in key sectors, including taxation, energy, SOEs, privatization, rightsizing of government and pension reforms.

He called the recent signing of a National Fiscal Pact between federation and the provinces a milestone in achieving harmony in driving the pace of structural reforms and incentivizing the provinces to mobilise greater tax resources, rationalize their development expenditures and improve their governance to meet the development goals.

Senator Muhammad Auragzeb thanked ADB for its continued support to Pakistan’s development agenda and its assistance provided in key sectors. He said Pakistan looked forward to further deepen its partnership with the ADB through enhanced assistance and support for its reform programme.

Speaking on the occasion, Mr. Donald Bobiash, Executive Director of Asian Development Bank, Mr. Shigeo Shimizu, Executive Director Asian Development Bank and other ADB officials expressed their appreciation for the bold reforms undertaken by Pakistan for stabilizing its economy and achieving sustainable growth. They reaffirmed ADB’s support for ongoing reforms and strengthening the country’s fiscal framework. They also assured the bank’s support for Pakistan’s development goals and its efforts for inclusive growth, innovation, and climate action.

The Finance Division has clarified news media reports linking the two deceased Chinese engineers killed in an explosion in Karachi, to the ongoing IPP talks.

In a statement, Finance Division said the government has been negotiating with IPPs, including the power plant for which both the Chinese engineers worked. However, the deceased engineers were not involved in the IPP talks. Hence, any impression created to this effect by media reports is misleading and has no basis.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said the government is focused on ensuring that Pakistan stays on the course of structural reforms in core sectors of economy, including energy, SOEs, privatization, taxation and rightsizing of government.

He said that in the past Pakistan has been seen as a single-tranche country but time has come to remove this perception and implement the structural benchmarks agreed under the programme with the IMF to ensure permanence to the macroeconomic stability.

He made this observation while talking to a group of investors led by Barclays, who called on the Minister at Finance Division today. The Minister briefed the delegation on various policy interventions and initiatives implemented during the last 12 months to reform the economy and also gave them an overview of the growth and macroeconomic stability in key economic indicators, including twin deficits, stable currency, foreign exchange reserves, and inflation that remained “a big story throughout the year”.

The Minister said the current macroeconomic stability was an outcome of a successful conclusion of nine-month IMF Stand-by Agreement, initiated by Prime Minister Shehbaz Sharif and implemented with discipline, rigour and vigour by the caretaker administration, paving the way for a larger and longer EFF to bring permanence to the macroeconomic stability and implement structural reforms.

He highlighted a positive outcome of the macroeconomic stability for Pakistan was its ability to not only clear the Letters of Credit and Import backlogs by May and June last year, but also clear the payments of profits and dividends close to $ 2 billion to foreign investors.

He said the new fiscal year had started on a clean slate and noted the continuation of macroeconomic stability in the first quarter with current account deficit remaining under control due to strong remittances, healthy RDA flows and exports showing positive trends in terms of diversification and a higher delta in IT exports and services as per August figures.

The Minister also referred to credit upgrades by the international credit rating agencies and shared plans to access the international capital markets. He said the government had sent some powerful signals to the local market by scrapping some bank auctions to convey the message that it was under no desperation to borrow and it would only borrow at more palatable rates.

He said the government wanted the banks to start lending to the private sector on impersonal terms and also mentioned the incentives offered to banks in the budget this year for increasing their micro lending to the private sector, particularly agriculture, IT ecosystem and the SME sector.

He also briefed the delegation about various steps and measures taken by the government to demonstrate its seriousness to implement the reforms agenda, including the signing of a National Fiscal Pact between the federation and its four units to implement reforms in various sectors. He said the government’s vision was simple and it was to let the private sector lead the growth with policy framework and continuity provided by the government.

To a question, the Minister noted a big drop in the inflation figures from a 38-pc high of last year to a 44-month low of 6.9 per cent in September this year, was a strong marker of economic recovery.

The members of the Barclays Investors delegation lauded the Minister for his through roundup of the Pakistan economy, and expressed their appreciation for the way “things have started looking up in Pakistan”. They also appreciated the structural reforms and stability visible in different sectors of the economy, and evinced keen interest in exploring opportunities for participating in the growth of Pakistan economy though investment and business collaborations.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet today.

The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik, along with Federal Secretaries and senior officers from the concerned Ministries and Divisions.

The ECC discussed a summary by the Ministry of National Health Services, Regulations and Coordination regarding the short supply of Anti-Rabies Vaccine (ARV) at Federal General Hospital Chak Shahzad Islamabad. The meeting was told that the Anti-Rabies Vaccine (ARV) used at Federal General Hospital Chak Shahzad was manufactured by the National Institute of Health Islamabad and it was currently priced at Rs. 891.65 whereas the same drug was sold at Rs. 2126.40 for WHO-approved ARV and Rs. 1266.14 for non-WHO approved ARV in the market. After due consideration, the ECC approved the proposal to increase the Maximum Retail Price of Anti-Rabies Vaccine (ARV) manufactured by the National Institute of Health, Islamabad, from Rs. 891.65 to Rs. 1980 per vial of 0.5ml/ dose to cover the landed cost of imported material and ensure its sufficient production and supply to the public sector hospitals.

The ECC also considered and approved a proposal for increase in the rate of Special Allowance (equal to 20 Daily Allowances) for the employees of Anti-Narcotics Force (ANF) on a par with other federal Law Enforcement Agencies (LEAs). The meeting was told that the salaries of the ANF employees were considerably low as compared to employees of other LEAs despite undertaking similar work and encountering similar dangers and hazards peculiar to their job of drug prevention and border patrol. The impact of revision to the tune of Rs. 264.744 million in DA rates for the ANF employees would be met from within the current year’s sanctioned budget.

The ECC also took up and approved a proposal submitted by the Ministry of Climate Change & Environmental Coordination for grant of Technical Supplementary Grant (TSG) of Rs. 150 million to meet the requirements of the COP-29 to be held in Baku, Azerbaijan from 11th to 22nd November 2024. The meeting was told that Pakistan, being highly vulnerable to climate change impacts, was actively engaged in the United Nations Framework Convention on Climate Change and the COP-29 would afford Pakistan with an opportunity to showcase its domestic climate actions, such as renewable energy projects, afforestation initiatives, and disaster risk reduction measures by setting up a Pakistan Pavilion to host different side events to highlight the achievements.

A proposal from the Ministry of Inter Provincial Coordination for a TSG amounting to Rs. 400 for holding the 14th edition of South Asian Games in Pakistan in April next year was also taken up. However, after discussion it was decided that the proposal would be re-submitted to the next ECC with a more holistic plan with proper cost estimates of logistical details and plans for meeting the estimated expenditure through various sources, including sponsorships, commercial advertising, and estimated funding from the government.

The ECC also considered and approved a proposal submitted by Defence Division for a TSG amounting to Rs. 45 billion for various already approved projects of defence services during CFY 2024-25.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a virtual meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division today.

The meeting was attended by Minister for Maritime Affairs Mr. Qaiser Ahmed Shaikh, Chairman Federal Board of Revenue (FBR) Mr. Rashid Mahmood Langrial (virtual), Chairman Securities and Exchange Commission of Pakistan (SECP) Mr. Akif Saeed (virtual), Federal Secretaries, and senior officers from relevant ministries and departments.

The meeting considered a proposal by the Revenue Division regarding the reconstitution of the Board of Directors of Pakistan Revenue Automation (PVT.) Ltd. (PRAL) as per terms specified under the State Owned Enterprises Act 2023. The meeting considered the recommendation of five majority independent directors and four ex-officio members by the Board Nominations Committee as per Section (1) of Section 10 of the Enterprises (Governance and Operations) Act, 2023.

The meeting was told that all the five members recommended for positions of independent directors were drawn from the private sector and possessed vast relevant experience in top management positions besides having high-end professional qualifications, expertise and academic background in law, accountancy and management. The meeting considered the summary and accorded strong endorsement to the proposal.

Minister for Finance and Revenue Senator Muhammad Aurangzeb lauded the step to have majority independent directors in the Board, and complemented the selection of very prominent professionals from the SME sector to run the Board in a professional manner. He hoped the new Board would be able to observe strong oversight and good management of PRAL to help achieve revenue generation goals.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee (ECC) of the Cabinet today.

The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister for Power Sardar Awais Ahmed Khan Leghari (virtual), Minister for Planning, Development & Special Initiatives Mr. Ahsan Iqbal, Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik, Deputy Chairman Planning Commission, Governor SBP, and Chairman SECP, along with Federal Secretaries and senior officers from the concerned Ministries and Divisions.

At the outset, the Minister for Finance and Revenue shared an update on the current economic situation and macroeconomic stability achieved across all sectors of the economy. He said the currency was now in stable position with foreign exchanges at a 26-month high at the back of “very resilient and strong remittances flows”.

He said the IT exports had also stabilised at about 300 million monthly figure which was a great news for our export sector. He also lauded a steady growth in the RDAs with 165 million dollars inflows received last month.

He called the reduction in inflation to a single digit as a big story, hoping that inflation would further come down when the September data is released.

He described the situation with Current Account as very encouraging and noted the surplus of $75 million achieved in August. He hoped that with softer oil prices, a softer dollar and an aggressive rate cut which had already been reduced by 450bps, the current account situation would continue to be in a good position.

The Minister also spoke about the rejection by the government of all bids for treasury bills on Wednesday, saying the move was aimed at conveying the message that the government was under no desperation to borrow, and if it were to borrow, it would borrow at its own terms.

He urged the banking system to focus on lending to the private sector. He said the 450bps cut in policy rate and the resultant ease in borrowing would help the government reduce its single largest expenditure of debt servicing, and create room for the banking sector to step up and lend aggressively to the private sector.

Senator Muhamamd Aurangzeb also referred to the IMF Board meeting scheduled on 25th, saying that with the prayers of the nation and efforts made by the Prime Minister in association with bilateral partners, our local teams, administration and all our institutions, we would hear a good news on 25th and move on from there.

He noted that macroeconomic stability was not an end itself but a means to an end. He called it the basic hygiene and the building blocks that provide foundation to the whole edifice. We would move in the right direction on the basis of this approach, and ensure gradual stability in the micro sectors as well, he added.

Later, during the meeting, the ECC considered a summary from the Ministry of Industries and Production regarding the export of 40,000 metric tons of sugar to Tajikistan. In principle, the ECC approved the proposal; however, it directed that after further discussions with the Tajik entity, the final form of the sale agreement be brought back to the ECC for approval. Additionally, the Ministry of Industries and Production, in conjunction with the Trading Corporation of Pakistan (TCP), will lead this process.

The ECC also reviewed and approved another proposal from the Ministry of Industries and Production regarding the further export of 0.100 million metric tons of surplus sugar. The meeting was told that the price of sugar as per PBS data had shown a downward trend since July while sufficient stocks of sugar were available to meet domestic requirements up to January next year. After detailed discussions and deliberations, the ECC approved the export in line with the terms and conditions already decided by the ECC in its meeting on 13 June 2024.

In another agenda item, the ECC also reviewed a proposal from the Ministry of Interior concerning the release of funds through a Technical Supplementary Grant for Project Implementation Letters of HQ Frontier Corps (FC), Khyber Pakhtunkhwa (South). The ECC gave approval for the funds amounting to Rs. 456.600 million, and it will be released as Grant-in-Aid to the Interior Division for onward disbursement to HQ FC (South) in D.I. Khan for construction of eight women facilities in tribal districts.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb hosted a dinner in honor of Mr. Masatsugu Asakawa, President of the Asian Development Bank (ADB), and his delegation in Islamabad today.

The event was also attended by Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Federal Minister for Petroleum Mr. Mussadiq Masood Malik, Minister of State for Finance and Revenue Mr. Ali Parvez Malik, Chairman SECP, Deputy Governor SBP, Secretary Finance, Secretary for Petroleum, Special Secretary of the Economic Affairs Division, senior officials from the Ministry of Finance, and representatives of the ADB.

In his welcoming remarks, the Finance Minister highlighted Pakistan’s long-standing partnership with the ADB, underscoring the pivotal role the bank has played in supporting Pakistan’s development agenda. He commended ADB's continued assistance in key sectors such as infrastructure, energy, education, and social development.

Minister Aurangzeb provided an update on the government's recent reforms of State-Owned Enterprises (SOEs), aimed at improving governance, efficiency, and financial sustainability. He noted that these reforms are central to Pakistan’s economic revitalization. Mr. Asakawa appreciated the efforts undertaken by Pakistan in this regard, reaffirming ADB’s support for the ongoing SOE reforms and their role in strengthening the country’s fiscal framework.

The Minister also took the opportunity to request ADB to further engage the private sector in Pakistan, emphasizing that the private sector will play a leading role in driving the country’s future growth and development. This, he said, will ensure a dynamic, sustainable, and resilient economy for Pakistan.

In addition, Minister Aurangzeb highlighted Pakistan's achievements related to the Policy-Based Guarantee and the Reko Diq guarantee, both of which have been made possible through the sovereign window. Mr. Asakawa acknowledged these accomplishments and commended Pakistan’s commitment to ensuring transparency and long-term sustainability in managing key financial obligations.

Mr. Masatsugu Asakawa, in his response, acknowledged the robust relationship between Pakistan and ADB. He reaffirmed the Bank’s commitment to supporting Pakistan’s development goals, focusing on projects that promote inclusive growth, innovation, and climate action. He also appreciated Pakistan’s efforts in implementing reforms that align with ADB’s broader vision for the region.

The dinner provided an opportunity for open and constructive discussions between Pakistani officials and the ADB delegation, paving the way for future collaboration on critical projects.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division today.

The meeting was attended by Minister for Housing & Works Mian Riaz Hussain Pirzada, Minister for Economic Affairs Mr. Ahad Khan Cheema, Minister for Petroleum Mr. Awais Ahmed Leghari, Governor of the State Bank of Pakistan (SBP), Chairman of the Securities and Exchange Commission of Pakistan (SECP), Additional Attorney General for Pakistan, Deputy Chairman of the Planning Commission, Federal Secretaries, and senior officers from relevant ministries and departments.

The Ministry of Communications presented a proposal regarding the categorization of the National Highway Authority (NHA) as an essential State-Owned Enterprise (SOE) under Paragraph 9 of the SOEs Policy 2023, due to NHA's involvement and its critical role in implementing government policies with significant security, social, and economic impacts. After careful consideration, the Cabinet Committee on State-Owned Enterprises (CCoSOEs) approved the proposal, categorizing the NHA as an essential SOE.

The Ministry of Communications also proposed the categorization of the Pakistan Post Office Department (PPOD) as a strategic and essential State-Owned Enterprise (SOE) under Paragraph 9 of the SOEs (Ownership and Management) Policy, 2023. The proposal was reviewed in the light of the justifications presented by Ministry of Communications, and was approved by the CCoSOEs.

The Ministry of Defence Production submitted a proposal regarding the strategic categorization of Defence Production Establishments, including entities like Pakistan Ordnance Factories (POF), Heavy Industries Taxila (HIT), Pakistan Aeronautical Complex (PAC), Karachi Shipyard & Engineering Works (KS&EW), National Radio Telecommunication Corporation (NRTC), and Telephone Industries of Pakistan (TIP). These establishments are engaged in national security and defence-related activities that fulfill the operational requirements of the Armed Forces. The proposal was approved for further submission to the Cabinet for final approval.

The Ministry of Energy (Power Division) presented a proposal for the reconstitution of the Boards of Directors of the Central Power Purchasing Agency Guarantee Ltd (CPPA-G), Power Planning and Monitoring Company (PPMC), and Power Information Technology Company (PITC). The proposal included the nomination of Independent Directors, Ex-Officio Directors, and the Chairman for each of these Boards. After consideration, the CCoSOEs approved the nominations, thereby reconstituting the Boards of CPPA-G, PPMC, and PITC.

The Ministry of Water Resources submitted a proposal to categorize the Water and Power Development Authority (WAPDA) as a strategic or essential SOE. After deliberation, the Committee decided to categorize WAPDA as an essential SOE. It was further directed that WAPDA align its governing Act in consonance with the SOEs Act.

The meeting concluded with the Committee emphasizing the importance of strategic oversight and effective governance of State-Owned Enterprises to ensure their contribution to national development objectives.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the meeting of the Economic Coordination Committee today.

The meeting was attended by Minister for Economic Affairs Mr. Ahad Khan Cheema, Minister for Commerce Mr. Jam Kamal Khan, Minister for Power Sardar Awais Ahmed Khan Leghari, Minister for Petroleum Mr. Mussadiq Masood Malik, Minister for Planning, Development & Special Initiatives Mr. Ahsan Iqbal, Minister for Privatisation and Investment Mr. Abdul Aleem Khan, Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik, Deputy Chairman Planning Commission, Governor SBP, and Chairman SECP, Federal Secretaries, and senior officers from concerned Ministries and Divisions.

The ECC reviewed a summary from the Ministry of Communications concerning the "Kalkatak-Chitral 48 km (Section-III) Road Project (N-45) - Procurement of Civil Works" and authorized the Ministry of Communications and the National Highway Authority to proceed with the procurement of civil works as per Public Procurement Rule-5.

The ECC considered a proposal for provision of funds amounting to Rs. 238.42 million, for clearing arrears of wheat subsidy schemes 2015-16, by the Ministry of National Food Security and Research (NFSR). ECC took into account the recommendations of the Senate Standing Committee on Finance and Revenue, and directed the Ministry to arrange the funds through the available budgetary resources and settle the long pending claims.

On a proposal of the Ministry of National Food Security and Research for a loan of Rs. 656 million to the Pakistan Central Cotton Committee (PCCC) to enable the organization to pay salaries and pensions to its employees, the ECC deliberated on the rationale and decided that this entity should be considered for wound-up. It was therefore directed that a case be submitted to the Cabinet Committee for Rightsizing of the Federal Government.

Lastly, the ECC considered a summary from the Ministry of Energy (Petroleum Division) regarding a change in the gas supply priority order. The ECC approved the proposal to amend the existing gas allocation priority by placing gas use for industrial processes in the first priority alongside domestic and commercial sectors, while gas use for industries using captive power was relegated to a lower priority alongside the Compressed Natural Gas (CNG) sector. This measure would facilitate the industry using gas in it's processes, as they would be included in the top priority category.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, reaffirmed Pakistan’s commitment to a homegrown economic agenda centered on comprehensive institutional reforms across key sectors of the economy.

The Minister made these remarks during a meeting with His Excellency Nawaf Bin Said Al-Malki, Ambassador of the Kingdom of Saudi Arabia, who called on him today at the Finance Division. He emphasized that structural reforms are pivotal for ensuring sustainable economic growth and stability, forming a cornerstone of the government's policy agenda.

Senator Aurangzeb expressed deep appreciation for the Kingdom of Saudi Arabia's consistent economic support to Pakistan, while highlighting the renewed interest shown by Saudi investors in pursuing joint ventures and business collaborations with Pakistan's private sector.

The Minister also recalled his productive meetings with His Excellency Mohammad Al-Jadaan, Finance Minister of Saudi Arabia, and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development (SFD), during his visit to Washington in April this year. He further noted the significant outcomes of the high-level business delegation's visit from Saudi Arabia to Pakistan in May, aimed at exploring investment opportunities, expanding bilateral cooperation, and scaling up partnerships across diverse sectors.

During the discussion, Senator Aurangzeb outlined Pakistan’s positive economic trajectory, citing key indicators such as currency stabilization, reduced inflation, a surge in remittances, prudent management of the current account deficit, and foreign exchange reserves sufficient to cover two months of imports.

His Excellency Nawaf Bin Said Al-Malki commended the Government of Pakistan's efforts in implementing structural and institutional reforms and reiterated the Kingdom’s unwavering commitment to contributing to Pakistan’s economic growth.

The Ambassador also acknowledged the immense potential for investment and business opportunities between the two countries. He indicated that a Saudi business delegation is expected to visit Pakistan in the coming months to further explore areas for joint ventures and collaborative investments.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb held a meeting with Mr. Mark Skelton, Chairman Board of Directors K-Electric, on Tuesday to exchange views around K-Electric’s plans for catering to growing energy demands of Karachi and the company’s transition to renewables to ensure affordable and sustainable energy for the residents of port city.

Mr. Javed Kureishi, Member Board of Directors KE, Mr. Mubasher H. Sheikh, Member Board of Directors KE, Mr. Moonis Alvi, CEO KE, Mr. Imran Qureshi, Chief Regulatory Affairs KE, M. Aamir Ghaziani, CFO KE and senior officials of the Finance Division also attended the meeting.

The KE team briefed the Minister regarding its plans to include renewable in its generation mix, with a view to lowering down the cost of electricity for Karachi. They also apprised the Minister of other initiatives being taken by KE for improved service delivery to residents of Karachi.

The Minister recounted the structural reforms being undertaken in the power sector, including reconstitution of Boards of Directors of Discos by bringing in professionals from private sector and reducing the number of government nominees to bring in more efficiency in the boards and improve overall service delivery.

He reiterated the government’s resolve to ensure private sector participation in all government-owned discos and gencos and mentioned the start of process of privatizing of three discos in line with the Prime Minister’s vision to enable and facilitate the private sector to lead the economy.

The Minister also lauded the initiatives taken by K-Electric for further investment and expansion of its energy and distribution operations, and assured full support for its efforts to transition to renewables and production of cheaper and affordable energy through the use of domestic resources.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb has said that agriculture and information technology are the backbone of our economy and the real levers of economic growth of the country.

He made these comments during a call on him by Mr. Kevin Piccoli, Deputy Director in the Office of International Affairs at the US Commodity Future Trading Commission (CFTC). Chairman SECP Mr. Akif Saeed and senior officials from the Finance Division and officials from US Embassy in Pakistan also attended the meeting.

The meeting discussed the role of agricultural commodities market and the collaboration between SECP and CFTC for an ongoing series of capacity-building training sessions on the development of commodities futures market, regulation and oversight leading to a well-functioning commodities market in Pakistan.

Senator Muhammad Aurangzeb welcomed the initiative and highlighted the role of agriculture in Pakistan’s economy, particularly its contribution to the GDP of the country. He noted that while Pakistan’s economy during FY2024 grew by 2.38 per cent, agriculture emerged as a main driver of economic growth, registering an impressive growth of 6.25 per cent due to double- digit growth in output of major crops.

He said that both agriculture and IT in Pakistan were largely driven by domestic factors and a healthy and consistent growth in these sectors was a positive sign and a stabilizing factor in view of their export potential for national economy.

In a heartfelt tribute on Defence Day, the Honourable Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb visited the residence of Shaheed Lance Naik Waqar Hussain Shah to honor the sacrifices of Pakistan’s armed forces.

Shaheed Waqar Hussain Shah laid down his life in the line of duty, defending the nation with unparalleled bravery and dedication.

During the visit, the Finance Minister met with the widow of the martyr, Mrs. Sania Nazir, and their children, offering his deepest condolences and expressing the nation’s immense pride in the valour and sacrifice of Shaheed Waqar. He highlighted that the entire country stands in gratitude and solidarity with the families of those who have given their lives for Pakistan.

The Finance Minister remarked, “Our martyrs are the pride of the nation, and their sacrifices serve as a beacon of courage and patriotism for generations to come. The bravery of heroes like Shaheed Waqar Hussain Shah will forever be remembered, and the nation is indebted to their service.”

Mrs. Sania Nazir expressed her gratitude for the Minister’s visit, reiterating her commitment to raising their children in the spirit of patriotism and service to the country. The children of Shaheed Waqar were assured of continued support and recognition by the government for their father’s supreme sacrifice.

The Finance Minister also commended the Pakistan Army and other security forces for their unwavering commitment to safeguarding the nation’s sovereignty and ensuring peace within the region. He emphasized that the sacrifices of martyrs are a reminder of the enduring strength and resilience of Pakistan’s military and the spirit of its people.

The visit concluded with prayers for Shaheed Waqar Hussain Shah and all martyrs of the Pakistan Armed Forces, whose legacy continues to inspire the nation.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb held a virtual meeting with MS. Johanna Chua, Head-Global Emerging Markets Economics, Citi Global Markets, and its partners and investors from different parts of the world on Thursday.

During the meeting, the Finance Minister presented a comprehensive overview of the Pakistan economy with focus on the stabilisation and growth trajectory achieved over the last one and a half year that had brought back the interest of investors and lenders into Pakistan.

The Minister said that Pakistan economy was moving in the right direction with serious and significant reforms undertaken in various sectors to ensure permanence to macroeconomic stability. He said the decision to go for a $ 7 billion program with IMF was also aimed at ensuring permanence to macroeconomic stability and executing structural reforms.

During the meeting, the Minister also answered questions from participants about the state of economy, ongoing economic reforms, including privatisation, taxation, energy sector and the government's efforts for promoting various sectors, including IT and agriculture.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb held a virtual meeting with MS. Johanna Chua, Head-Global Emerging Markets Economics, Citi Global Markets, and its partners and investors from different parts of the world on Thursday.

During the meeting, the Finance Minister presented a comprehensive overview of the Pakistan economy with focus on the stabilisation and growth trajectory achieved over the last one and a half year that had brought back the interest of investors and lenders into Pakistan.

The Minister said that Pakistan economy was moving in the right direction with serious and significant reforms undertaken in various sectors to ensure permanence to macroeconomic stability. He said the decision to go for a $ 7 billion program with IMF was also aimed at ensuring permanence to macroeconomic stability and executing structural reforms.

During the meeting, the Minister also answered questions from participants about the state of economy, ongoing economic reforms, including privatisation, taxation, energy sector and the government's efforts for promoting various sectors, including IT and agriculture.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, met with the leadership of Pak China Investment Company Limited (PCICL) to discuss boosting Chinese investment in Pakistan, with a focus on joint ventures and expanding exports of Pakistan-based Chinese firms.

Attendees included PCICL Chairman Mr. Sun Bo, Managing Director Mr. Hassan Raza, and senior officials from the Finance Division and PCICL.

During the discussion, the Finance Minister said that PCICL was an important partner for Pakistan’s economic growth and development. He said that in the CPEC phase 2, development and growth of industry and relocation of businesses were going to be the priority areas. In such a scenario, it was imperative for PCICL to reposition itself with a clear view of the target market and play the role of an anchor in identifying areas for joint ventures and SMEs and providing advisory and support in financing to boost investment and trade flows, he said.

Mr. Sun Bo and Mr. Hassan Raza briefed the Minister on PCICL’s efforts to strengthen Pakistan-China trade and investment, pledging continued support. Mr. Sun Bo, Chairman PCICL, thanked the Finance Minister and appreciated his comments and concerns about the role of PCICL in promoting investment and joint ventures between both countries. “We would do our best to serve the Pakistan economy,” he added.

In the end, the Finance Minister also reassured Chinese investors of their security, underscoring the importance of their contributions to Pakistan’s economic progress, and reiterated the commitment of the government to promote a business and investment friendly environment in the country.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a virtual meeting with H.H. Juland Jaifer Salim Al-Said, Chairman of the Pak Oman Investment Company Limited (POIC) on Thursday to discuss ways for expanding business collaborations and enhancing investment and trade flows between the two brotherly countries.

The meeting was attended by H.H. Juland Jaifer Salim Al-Said, Chairman of the Pak Oman Investment Company Limited (POIC), Mr. Nauman Ansari, Managing Director of POIC, and senior officials from POIC and the Finance Division.

During the meeting, the Finance Minister highlighted the significant strides achieved in recent months to stabilize the economy and put it on a sustainable path of growth. He also mentioned the improvements registered in several macro and micro economic indicators of the economy as well as a host of structural reforms undertaken in various sectors of the economy, including energy, taxation, privatization, and downsizing of government to let the private sector lead the growth with the government playing the role of a facilitator, in the process.

Senator Muhammad Aurangzeb highlighted that the Government under the Prime Minister Muhammad Shahbaz Sharif is determined to push ahead with its reform agenda and there was a consensus at the highest level to ensure continuity and certainty of policies to facilitate the private sector, promote businesses and provide a secure and friendly investment climate.

H.H. Juland Jaifer Salim Al-Said, Chairman of the Pak Oman Investment Company Limited (POIC) lauded the initiatives taken by Government in Pakistan for stabilizing the economy. He expressed his deeply-ingrained love for Pakistan, and that the Government of Oman and its businessmen also viewed Pakistan as a brotherly country and a potential place for business and investment. He expressed hope that due to opening up of more investment opportunities in Pakistan in the wake of ongoing economic reforms, there would be more business collaborations.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with a delegation of international investors led by Mr. Amin Mohammad Khowaja, CEO of J.P. Morgan Pakistan. The discussions centered on the interests of the institutional investors exploring fixed income investment opportunities in Pakistan's economy.

During the meeting, the Finance Minister highlighted the significant strides Pakistan has made in improving its macroeconomic indicators - including the 14 % rise in exports, the decline in inflation to 9.6 % (which is 34 months low), and an overall decline in the Current Account deficit. He also pointed out the improvement in Pakistan’s sovereign credit ratings which reflect a stable and promising economic outlook. “The country's economic growth is underpinned by robust fiscal discipline, inflation management, and a favorable balance of payments" he stated.

Senator Aurangzeb also elaborated on the government's ambitious structural reforms agenda, aiming at broadening the tax base, rightsizing of the public sector, privatization drive, and energy sector reforms, to aid overall macroeconomic stability. The Minister reaffirmed the Government’s resolve to carry forward the comprehensive reforms agenda to enhance the efficiency and governance of public institutions. “These reforms,” he noted, “are designed to create a more conducive environment for foreign investment and to ensure the long-term stability of the economy.”

The delegation commended the government's efforts to create a business-friendly environment and expressed optimism about the prospects of increased investment flows into Pakistan. The discussions covered a range of potential investment areas, including renewable energy, information technology, infrastructure development, and the financial sector. The investors expressed keen interest in these sectors, recognizing Pakistan as a market with immense potential and a strategic location as a gateway to regional markets where foreign investors are eager to explore opportunities for investment in various sectors.

The Finance Minister assured the delegation of the government's full support in facilitating their investment ventures and welcomed their interest in contributing to Pakistan's economic growth and reiterated Pakistan's strong commitment to attracting foreign investments through maintaining a business friendly environment.

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with Mr. Mikko Keto, the Global CEO of FLSmidth, a leading global provider of engineering and equipment for the mining and cement industries.

The meeting was also attended by H.E. Mr. Jakob Linulf, Ambassador of Denmark, alongside senior officials from FLSmidth and the Finance Division.

During the meeting, the Finance Minister emphasized Pakistan's strategic shift towards an export-led growth model aimed at ensuring sustainable economic development across various sectors. He also highlighted the government's ongoing efforts in the form of comprehensive reforms in the energy and power sectors, privatization of state-owned enterprises, and restructuring of the tax system and public expenditure.

Senator Aurangzeb underscored the government's commitment to facilitating private sector-led growth, with the state focusing on creating a business-friendly environment. "We are determined to pursue our change agenda despite resistance from those favoring the status quo. The private sector must lead the way, and our role is to ensure maximum facilitation," he added.

Mr. Mikko Keto, the Global CEO of FLSmidth, expressed his appreciation for the support provided by the Government of Pakistan and shared insights into the company's growing presence in the country. He highlighted FLSmidth’s increased investment in Pakistan’s mining sector, which has led to enhanced local value addition, increased taxation contributions, and the creation of employment opportunities for locals. "We have a comprehensive understanding of the mining potential in Pakistan, and we are keen to explore further investment opportunities through local partnerships and collaborations," stated Mr. Keto.

The Finance Minister assured the delegation of Pakistan's dedication to providing a favorable and conducive investment climate for foreign investors.

The meeting concluded with both parties expressing a strong commitment to strengthening the economic ties between Pakistan and Denmark, particularly in the mining and cement industries, which hold significant potential for growth and development.

The Federal Minister for Finance & Revenue, Senator Muhammad Aurangzeb, presided over the meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at the Finance Division today. The meeting focused on various critical issues related to the management and strategic direction of key State-Owned Enterprises (SOEs).

The meeting was attended by Minister for Planning Development and Special Initiatives Mr. Ahsan Iqbal, Minister for Commerce Mr. Jam Kamal Khan, Minister for Housing & Works Mian Riaz Hussain Pirzada, Minister for Economic Affairs Mr. Ahad Khan Cheema, Minister for Maritime Affairs Mr. Qaiser Ahmed Sheikh, Deputy Chairman Planning Commission, Governor SBP, Chairman SECP, Chairman TCP, Chairman PQA, Federal Secretaries, and other senior officers from the relevant ministries and divisions.

The Committee discussed a summary of the Ministry of Commerce regarding the plan to reinvigorate the Trading Corporation of Pakistan (TCP). It was decided that in view of the peculiar nature of the entity, TCP may be categorized as a an essential SOE under the SOEs Policy, 2023. It was further decided that a detailed financial plan of the entity should be prepared, which should address the question of settlement of its liabilities.

A summary of Finance Division regarding the appointment of two Independent Directors on the Board of the Export-Import (EXIM) Bank of Pakistan was considered and approved. The committee endorsed the appointments of Ms. Ayesha Aziz and Mr. Imran Maqbool as Independent Directors on EXIM Bank's Board, in accordance with Section 17 of the Export-Import Bank of Pakistan Act, 2022.

A summary of Ministry of Industries and Production regarding the categorisation of SMEDA (Small and Medium Enterprises Development Authority) by CCoSOEs was also discussed. Keeping in view the importance of SMEDA for facilitation of SMEs, it was categorised as Essential SOE in the light of Para-11 of SOEs Policy.

The Committee also deliberated on a summary from the Ministry of Maritime Affairs regarding the appointment of Independent Directors to the Pakistan National Shipping Corporation (PNSC) and recommend the appointment of the proposed independent directors to the cabinet.

The Committee also approved a proposal of the Ministry of Maritime Affairs to declare the Pakistan National Shipping Corporation (PNSC) as a Strategic SOE under Para-9(a) of Chapter-3 of the SOEs Ownership and Management Policy, 2023. Moreover, it was also decided that the option increased private shareholding in PNSC may also be explored.

The reconstitution of the Board of Trustees of Karachi Port Trust (KPT) for the term 2024-2026 was also discussed based on a summary from the Ministry of Maritime Affairs. The Committee approved the proposal of the Ministry and recommended the same for approval of the cabinet.

Mr. Muhammad Yahya, United Nations Resident and Humanitarian Coordinator for Pakistan, called on Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division in Islamabad.

Mr. Muhammad Yahya briefed the Finance Minister on the work of UN and its agencies undertaking development and humanitarian assistance projects in Pakistan. He also shared the success of UNESCAP and its work on debt consolidation in middle income countries. Mr. Yahya noted that energy transition was an important area for possible cooperation with Pakistan.

The Finance Minister shared the commitment of the government towards policy reforms and sustainable economic development and appreciated the cooperation provided by the UN and its agencies in this regard. The Minister reiterated that climate finance and energy transition were essential areas for improving energy sector viability in the country and welcomed the cooperation with UNESCAP in this regard.

The meeting concluded with both sides expressing their resolve to continue working closely to address Pakistan’s development challenges and to implement sustainable solutions that benefit all segments of society.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with the leadership of Pak-Kuwait Investment Company (PKIC) to discuss the strategic initiatives and future directions of the joint venture in Pakistan.

Attendees included Mr. Saad ur Rehman Khan Managing Director Pak-Kuwait Investment Company, the Finance Secretary, and senior officials from the Finance Division.

Mr. Saad ur Rehman Khan provided an overview of PKIC’s current portfolio, highlighting the PKIC’s initiatives in the real estate sector leveraging Islamic finance structures to fund major infrastructure projects addressing Pakistan’s investment needs while ensuring that investment activities adhere to Islamic principles, thereby attracting a broader range of investors. The discussions also highlighted PKIC's dedication to supporting small and medium enterprises (SMEs) across Pakistan.

The Finance Minister commended Pak-Kuwait Investment Company for its strategic contributions to Pakistan's economy, especially in sectors vital to the nation's long-term development. The Minister specifically acknowledged PKIC’s proactive approach to integrating Islamic finance into its operations, noting that this approach not only aligns with Pakistan’s development priorities but also resonates with the broader goals of ethical and sustainable growth.

In conclusion, both sides emphasized the need for continued collaboration and support to enhance the effectiveness of such joint ventures.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a review meeting with representatives from Joint Venture Investment Companies, including Pak-Brunei Investment Company Limited (PBICL) and Saudi-Pak Industrial and Agricultural Investment Company (SPI&AIC). The meeting centered on evaluating the progress, challenges, and future directions of these companies.

The meeting was attended by senior leadership from both companies, including Ms. Dk Noor ul Hayati Binti Pg Julaihi, Chairman PBICL, Mr. Sultan M. Hassan Abdulrauf, Chairman SPI&AIC, and senior officers from Finance Division.

CEO Pak-Brunei Investment Company Limited (PBICL) gave a brief overview about the portfolio of the company and its major initiatives in Pakistan. He apprised the Minister about the role played by PBCIL in promoting economic cooperation between Pakistan and Brunei by facilitating investments in Industry and Agricultural sectors, through financial services, real estate, and SME’s support, and how it has contributed to significant advancements in these areas, fostering bilateral trade and economic stability.

Similarly, CEO Saudi-Pak Industrial and Agricultural Investment Company (SPI&AIC), also gave a presentation about the major development initiatives of the company in the country for promoting Islamic finance, food security, digital finance, trade, and agriculture and livestock.

The meeting also discussed various aspects of the operations of these companies, including investment strategies, performance metrics, and key impediments affecting their growth. Both companies presented their achievements and challenges, highlighting areas that require policy support to overcome obstacles in their operational landscape. The discussion also focused on potential areas for future investments and collaborations through more Government-to-Government initiatives in order to support priority sectors.

The Finance Minister appreciated both companies and specifically applauded the implementation strategies of KSA’s Vision 2030 for achieving their targets within a few years, and stressed that Pakistan is keen on learning those strategies.

Senator Aurangzeb also expressed the Government's unwavering commitment to creating an enabling environment for private sector investment, recognizing the critical role that joint venture companies like PBICL and SPI&AIC could play in driving economic growth. He underscored the importance of these ventures in attracting foreign direct investment (FDI).

In the end, the Minister reaffirmed that the government is keen on introducing policy measures that will streamline investment processes, and provide incentives for foreign investors.

H.E. Dr. Mehmet Paçaci, the Ambassador of the Republic of Türkiye, paid a farewell courtesy call on Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, at the Finance Division today.

The meeting underscored the deep-rooted and brotherly relations between Pakistan and Türkiye, founded on shared faith, history, and cultural affinities.

The Finance Minister expressed appreciation for the outgoing Ambassador’s contributions to strengthening bilateral relations and reiterated Pakistan’s commitment to continue deepening its partnership with Türkiye across various sectors, including trade, investment, technical cooperation, and more. The Minister also highlighted the progress made during the recent visit of the Turkish trade delegation to Pakistan, led by H.E. Prof. Dr. Omer Bolat, Trade Minister of Turkiye, which helped in exploring new avenues for cooperation in sectors such as energy, agriculture, infrastructure, and technology.

Ambassador Paçaci, in his remarks, expressed gratitude for the cooperation and support extended by the Government of Pakistan during his tenure. He also extended appreciation on behalf of the trade delegation of Turkiye and noted that these engagements would further solidify economic ties and help unlock the vast potential for bilateral trade and investment.

The meeting also highlighted the signing of the Trade in Goods Agreement 2022, as a significant step towards achieving the bilateral trade target of USD 5 billion. Both sides underscored the need for enhancing the trade and investment portfolio through more Government-to-Government (G2G) and Business-to-Business (B2B) arrangements.

In the end, the Minister extended his best wishes to Ambassador Paçaci in his future endeavors and expressed confidence for continued collaboration and enduring friendship between Pakistan and Türkiye. The Ambassador also assured of Turkiye’s continued commitment to working towards the common goals of both nations.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the Steering Committee Meeting on the Pakistan Raises Revenue Program (PRRP) at the Finance Division today.

The meeting was attended by the Minister of State for Finance & Revenue Mr. Ali Parvez Malik, Chairman FBR, Secretary EAD, Secretary PD&SI, Secretary Maritime Affairs, Ms. Tania Airdus CEO Waseela, Mr. Salman Nasir CEO Ayesha Spinning Mills Ltd., Mr. Kamran Khalid Chief Product Officer Netsol Technologies, senior officers from concerned ministries and FBR, and key stakeholders from the private sector and relevant agencies.

The meeting focused on strategies to enhance Pakistan's revenue generation capacity. During the meeting, participants discussed various initiatives and reforms aimed at broadening the tax base, improving tax compliance, and reducing revenue leakages. The committee explored innovative approaches to enhance the efficiency of tax collection mechanisms and ensure equitable distribution of the tax burden.

The Steering Committee Meeting concluded with a strong consensus on the need for concerted efforts to implement the PRRP and achieve its objectives. The government will continue to engage with stakeholders and take necessary steps to ensure the successful implementation of the program.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with Mr. Antti Partanen, a representative from FinnFund, a Finnish development financier. The meeting focused on exploring potential investment opportunities in Pakistan.

The Finance Minister underscored the significant improvements in Pakistan's macroeconomic indicators and highlighted the government's structural reform agenda, including the digitalization of the Federal Board of Revenue (FBR), energy sector reforms, State-Owned Enterprises (SOEs) reforms, and privatization measures. He stressed the government's focus on transforming Pakistan into an export-led economy and attracting Foreign Direct Investment (FDI) to enhance the country's export base.

Mr. Partanen presented an overview of FinnFund's profile and investment initiatives in Pakistan, emphasizing their interest in digital infrastructure, renewable energy, agriculture, and forestry. He noted that Pakistan's growing young population makes it an attractive destination for financing and expressed FinnFund's willingness to explore investments in various sectors of the country.

The Minister reiterated the commitment of the government for making Pakistan's investment climate favourable and conducive for foreign investors.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with Mr. Mehmat T. Nane, Chairperson of Pegasus Airlines, accompanied by Mr. Muhammad Ali Tabba, CEO of Lucky Cement Limited.

During the meeting, Mr. Mehmat T. Nane presented an overview of the Turkish aviation strategy, highlighting key aspects that could benefit Pakistan's aviation sector. He elaborated on how Pakistan could leverage Turkiya’s experience and expertise to advance its own aviation industry.

Senator Muhammad Aurangzeb appreciated the success of Turkish aviation industry and added that collaboration in the aviation sector with Turkiya was an important part of the bilateral relations, noting that it aligns with the Prime Minister's vision to enhance Pakistan's aviation industry.

The Finance Minister also recalled a recent meeting with the Turkish Trade Minister, where both sides discussed various avenues for trade and business collaboration. This meeting, he noted, is part of the broader strategy to strengthen ties between Pakistan and Turkey in multiple sectors, including aviation.

The discussions today were deemed highly fruitful, marking a step forward in Pakistan's efforts to boost its aviation capabilities and foster stronger economic ties with Turkiya.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Finance Division today.

The meeting was attended by the Minister for Industries & Production Rana Tanveer Hussain, Minister for Commerce Mr. Jam Kamal Khan, Minister for Privatization Mr. Abdul Aleem Khan, Minister for Planning, Development & Special Initiatives Mr. Ahsan Iqbal Chauhdry, Minister for Economic Affairs Mr. Ahad Khan Cheema, Minister for Petroleum Mr. Mussadiq Masood Malik, Minister for Power Sardar Awais Khan Leghari, Dy Chairman Planning Commission, Federal Secretaries, and other senior officials of the relevant ministries.

The ECC approved the summary of the Ministry of Industries & Production regarding the export of further 0.100 million MT of Sugar with the following conditions:

a. In view of procedural delays encountered during export of sugar, the period allowed for export of sugar from the date of allocation of quota by respective Cane Commissioner shall be extended from forty-five (45) days to sixty (60) days;

b. Export proceeds shall be received in advance in case of Afghanistan only through banking channel however, export proceeds in case of LC may be allowed within a period of 60 days of opening of LC for export of sugar to other destinations;

c. Benchmark for Retail Price of sugar may be delinked from the permission to export sugar as retail price is not directly under the control of sugar mills; and

d. Condition of revoking of export quota in case of non-payment of dues of the growers from proceeds of export of sugar shall be applicable only to the non-compliant mills rather than PMSA as a whole.

Moreover, the ECC decided to monitor the market situation on a monthly basis and review its decision as per emerging needs, and instructed the Sugar Advisory Board to develop a comprehensive sugar policy within two months to address the sector's challenges and ensure sustainable growth.

The ECC also considered and approved the following Technical Supplementary Grants:

1. Rs. 276.250 million in favor of the Ministry of Interior to HQ Frontier Corps KP(N) TSG for Project Implementation Letters (PILs).
2. Rs. 1951.995 million on account of payment of security charges – Reko Diq Project to Frontier Corps Balochistan (South).
3. Rs. 20 billion as a special allocation for Operation Azm-e-Istehkam during CFY 2024-25.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a virtual meeting with Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, to discuss Pakistan’s economic trajectory and explore potential avenues for increased investment in the country.

The meeting was attended by Minister of State Mr. Ali Parvez Malik, Secretary Finance, and other senior officers from the Finance Division.

Senator Aurangzeb welcomed Dr. Chilwan and expressed gratitude for Dubai Islamic Bank's continuous engagement with Pakistan's financial sector. He highlighted the government's commitment to strengthening economic ties with international partners, particularly in Islamic banking, and expressed optimism about future collaborations with Dubai Islamic Bank.

The Finance Minister provided an in-depth overview of Pakistan's current economic scenario, emphasizing the progress made in stabilizing the economy and fostering a conducive environment for business and investment. He highlighted key initiatives taken by the government such as broadening the tax base, enhancing the ease of doing business, the digitalization of the Federal Board of Revenue (FBR), and ongoing reforms and restructuring in state-owned enterprises (SOEs) and privatization.

Dr. Adnan Chilwan expressed his appreciation for Pakistan’s economic policies and initiatives, and emphasized that Pakistan remains a strategically important market for Dubai Islamic Bank. Dr. Chilwan reiterated the bank's interest in playing a larger role in the country's financial growth, particularly in sectors such as Islamic banking, infrastructure, and SME development.

During the meeting, while exploring the potential areas for investment in Pakistan, the Minister invited the Dubai Islamic Bank to enhance its investment in the country and reaffirmed the government's dedication to maintaining a stable macroeconomic environment and ensuring that all necessary measures are in place to facilitate foreign investment.

The discussion underscored the importance of strengthening economic cooperation between Pakistan and Dubai Islamic Bank. The meeting reflected the shared commitment of both parties to fostering sustainable economic development and further deepening financial ties between Pakistan and the UAE.

Mr. Ahmed Abdelaal, President / GCEO of Mashreq Bank, called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb virtually to discuss the economic outlook and explore investment opportunities in Pakistan.

The meeting was also attended by Minister of State Mr. Ali Parvez Malik, and Senior officers from the Finance Division and State Bank of Pakistan.

The Minister greeted Mr. Ahmed Abdelaal and expressed appreciation for Mashreq Bank's interest in Pakistan's financial landscape and expressed keen interest of the Government of Pakistan to re-engage with Mashreq Bank.

The Minister provided an overview of the economic outlook of the country and mentioned the recent improvements in the macroeconomic indicators and stability of the currency and financial markets. He also mentioned the economic policies and initiatives of the government, emphasizing the ongoing efforts to stabilize the macroeconomic environment and enhance investor’s confidence through key initiatives of the government such as: broadening the tax base, improving the ease of doing business, digitalization within the Federal Board of Revenue (FBR), the privatization agenda of the government, and SOEs reforms.

Mr. Ahmed Abdelaal, President / GCEO of Mashreq Bank, appreciated the policies and initiatives of the government towards improving the investors’ confidence and creating a business-friendly environment in the country. He expressed Mashreq Bank’s interest in deepening its engagement in Pakistan’s financial sector and contributing to the country's economic development. He also mentioned that Pakistan is amongst one of the most strategic markets for investment opportunities. He also discussed the potential areas for investment in Pakistan such as such as infrastructure, energy, technology, agriculture, and SMEs in order to enhance collaboration between Pakistan and the UAE for remittances, trade, finance, and Islamic banking.

The Finance Minister underscored the significant potential of Pakistan's IT and Agriculture sectors, calling for increased investment from both local and international stakeholders to drive economic growth. He reiterated the government's commitment to providing a stable and conducive business environment, assuring that all necessary measures are being taken to facilitate investments.

In conclusion, the meeting highlighted the strong partnership between Pakistan and Mashreq Bank in promoting sustainable economic development. The dialogue reflected Pakistan’s commitment to prudent fiscal management, investor-friendly policies, and inclusive growth, marking a positive step forward in enhancing economic collaboration.

— BYD, a global frontrunner in electric vehicles and renewable energy solutions, made a significant entry into the Pakistani market today, promising a new era of eco-friendly transportation. The event, held in Islamabad, was graced by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, who delivered a keynote address underscoring the importance of sustainable innovation for Pakistan’s future.

Senator Aurangzeb welcomed BYD’s arrival, highlighting the company’s commitment to cutting-edge technology and environmental stewardship. “BYD’s entry into our market is not just about introducing new vehicles; it’s about embracing a sustainable future and aligning with Pakistan’s environmental goals, of achieving energy efficiency” Aurangzeb said. He further emphasized that the government is committed to support such initiatives that will not only advance green technology but will also provide a significant boost to the local economy by creating new job opportunities and fostering technological advancements in the automotive sector. Additionally, he added that the presence of a major global player like BYD could enhance Pakistan's export potential in the burgeoning electric vehicle market, aligning with national strategies to increase high-tech exports and reduce trade imbalances.

The Minister also asserted that the government and the industry stakeholders shall work together towards introducing such innovations that can contribute to the country’s sustainability goals and economic stability in the coming years.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division today.

The meeting was attended by the Minister for Industries & Production Rana Tanveer Hussain, Minister for Commerce Mr. Jam Kamal Khan, Minister for Privatization Mr. Abdul Aleem Khan, Deputy Chairman Planning Commission, Federal Secretaries, and other senior officials of the relevant ministries.

The Cabinet Committee approved the proposal presented by the Industries & Production Division to continue the Prime Minister’s Relief Package for FY 2024-25 through Utility Stores Corporation with revised price and subsidy. Furthermore, the ECC approved the request of Ministry of Industries & Production to declare Warehousing and Logistic Sector as an industry.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb presided over a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at Finance Division today.

The meeting was attended by Minister for Housing & Works Mian Riaz Hussain Pirzada, Minister for Maritime Affairs Mr. Qaiser Ahmed Sheikh, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Law & Justice Mr. Azam Nazeer Tarar, Deputy Chairman Planning Commission, Governor SBP, Chairman SECP, and other senior officers from the relevant ministries/ divisions.

The Cabinet Committee approved the proposals of Finance Division and Power Division for the appointment of candidates as independent directors/ chairman on the boards of ZTBL and NTDC respectively. The Committee also considered the proposal presented by the Ministry of Housing & Works and decided to categorize Pakistan Housing Authority – Foundation (PHA-F) as essential with further directions to present a revised plan of PHA-F to the Committee.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with PepsiCo’s CEO for Africa, ME & SA Mr. Eugene Willemsen accompanied by CEO Pakistan and Afghanistan Mr. Muhammad Khosa at Finance Division today.

The Finance Minister welcomed Mr. Willemsen and provided an update on Pakistan's economic progress. He highlighted recent improvements, including increased foreign exchange reserves, decreased inflation, and stable currency. The Minister attributed these positive indicators to the successful completion of the nine-month stand-by arrangement (SBA) with the IMF and mentioned that a staff-level agreement (SLA) has been reached to ensure continued economic stability. The Federal Minister also spoke about ongoing reforms in the energy sector, state-owned enterprises (SOEs), and taxation, emphasizing the government's initiative to incorporate undertaxed and untaxed entities into the tax net. He appreciated the PepsiCo’s seed lab initiative and its impact in driving agricultural and overall economic growth. Talking about the digitization in FBR, the Minister discussed the integrating RAAST (the digital payment system) and NADRA (the national database and registration authority) to further improve efficiency.

Mr. Willemsen expressed appreciation for Pakistan's positive economic indicators and noted the growth in the financial sector. The meeting underscored the commitment of both parties to foster continued economic development and explore collaborative opportunities in Pakistan.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Charge D’affaires Mr. Shi Yuanqiang and other officials of the Embassy of People’s Republic of China on Thursday, 8th August, 2024. Minister for Power Sardar Awais Ahmad Khan Leghari, Special Assistant to Prime Minister on Power Mr. Muhammad Ali, and Minister of State for Finance & Revenue Mr. Ali Pervaiz Malik also attended the meeting.

The Finance Minister warmly welcomed the Chinese delegation and underscored the strong bilateral relationship between the two nations. He highlighted recent positive developments in Pakistan's economic landscape, including increased foreign exchange reserves, decreased inflation, and enhanced tax collection. The Minister also outlined significant reforms in the energy sector, state-owned enterprises (SOEs), and ongoing privatization efforts. Emphasizing a focus on export-led growth, he expressed Pakistan’s commitment to attracting increased foreign direct investment (FDI).

Senator Muhammad Aurangzeb recalled his recent visit to China and expressed that he had extremely useful discussions with the Minister for Finance & other officials on proposals for enhancing economic cooperation between the two countries.

Minister of Power Sardar Awais Ahmad Khan Leghari said that the Government of Pakistan greatly appreciates the Chinese investment in the energy sector of Pakistan. He said that the Government was implementing a number of reforms to address the issues in the energy sector.

The Chargé d'affaires reiterated the Chinese government's commitment to support Pakistan’s sustainable economic development. He said that the Embassy was working with various departments on both sides to coordinate implementation of the understandings reached during Prime Minister’s visit to China.

Senator Muhammad Aurangzeb, the Federal Minister for Finance and Revenue was called on by the Trade Minister of Turkiye H.E. Prof. Dr. Omer Bolat along with the business delegation at Finance Division today.

The Finance Minister warmly welcomed Minister Bolat and his delegation and emphasized the robust and longstanding brotherly relationship between the two nations, which has potential for further bilateral economic and trade development.

Minister Bolat highlighted the shared commitment of Prime Minister Shehbaz Sharif and President Erdoğan to strengthen bilateral ties, with a particular focus on increasing trade and investment. He identified key sectors for potential investment, including services, health, education, medicine, and fashion.

Minister Bolat also proposed measures to facilitate investment for Turkish companies to enhance investor confidence and recommended increasing flight connectivity between Pakistan and Türkiye to support greater economic exchange.

Senator Aurangzeb acknowledged the significance of historical and cultural ties between Pakistan and Türkiye and provided an update on Pakistan's improving economic fundamentals, including a stable currency, foreign exchange reserves exceeding $9 billion, and declining inflation rates. He informed Minister Bolat of a recent Staff Level Agreement with the International Monetary Fund (IMF), aimed at ensuring long-term stability and outlined ongoing reforms in taxation, energy sector and state-owned enterprises. The Finance Minister also highlighted the role of the Special Investment Facilitation Council (SIFC) in streamlining investment processes and attracting foreign direct investment.

Both ministers reiterated their dedication to strengthening bilateral relations and expanding trade volume. Senator Aurangzeb assured Minister Bolat of the Pakistani government's commitment to supporting investors by streamlining regulations which support ease of doing business. Minister Bolat expressed gratitude for the support and constructive dialogue.

The meeting marked a significant step toward deepening economic ties and fostering closer cooperation between Pakistan and Turkiye.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, had a meeting today with a delegation of Meezan Bank, led by the Chairman of the Board of Directors, Mr. Riyadh S.A.A Edrees. The delegation also included President & CEO Mr. Irfan Siddiqui, Deputy CEO Syed Amir Ali. Governor of the State Bank of Pakistan (SBP), and senior officials from the Finance Ministry were also present in the meeting.

During the meeting, Mr. Riyadh highlighted the bank's status as the largest bank in the Middle East, with over 17,000 employees in 1,000 branches all over Pakistan.They expressed their appreciation for the actions of the Government of Pakistan, particularly its efforts in paying back dividends and facilitating an increase in remittances. These measures indicated that the country is moving in the right economic direction.

Federal Minister Muhammad Aurangzeb emphasized that Pakistan's macroeconomic indicators are on an upward trajectory, leading to a growing public trust in the country's economic management. He outlined the government's ongoing efforts in reforming the State-Owned Enterprises (SOEs), FBR, energy sector and privatization initiatives.The Minister reiterated the government's commitment to fostering investment and enhancing the ease of doing business in Pakistan.

The meeting concluded with both parties expressing optimism about Pakistan's economic growth and the potential for continued collaboration to achieve mutual goals.

Ambassador of Finland to Pakistan H.E. Mr. Hannu Ripatti called on Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb at Finance Division today.

The Finance Minister welcomed Ambassador Ripatti and shared updates on Pakistan's economic performance, highlighting rise in tax collection, increased remittances, and foreign exchange reserves exceeding USD 9 billion. He emphasized the positive evaluation from international credit rating agencies, which reflect the stability of Pakistan's economic environment. The Minister also discussed the successful conclusion of the 9-month SBA with the International Monetary Fund (IMF) and the recently finalized staff-level agreement for a 37-month IMF program. Additionally, the Minister outlined ongoing initiatives, including end-to-end digitization in the Federal Board of Revenue (FBR) to broaden the tax base, reforms in the energy sector, restructuring of state-owned enterprises (SOEs), and focus on export-led growth. These initiatives are aimed at enhancing economic stability and promote long-term growth.

The Finnish Ambassador expressed his appreciation for Pakistan's economic reforms and noted the improved fiscal situation of Finnish companies operating in Pakistan. The Minister thanked the Ambassador for Finland's continued support in the renewal of Pakistan's GSP Plus status, which benefits the country's export sector.

The meeting underscored the strong bilateral relations between Pakistan and Finland, and the shared commitment to fostering economic stability and growth.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with a delegation led by Executive Vice President Oceania and South Asia PARCO, Mr. Mehmet Celepoglu. The delegation also included CEO and co-founder of Gunvor Group, Mr. Torbjörn Törnqvist, a key investor in Pakistan's oil sector.

During the meeting, representatives from PARCO and Gunvor Group provided an overview of their current projects and activities in Pakistan. They reaffirmed their dedication to supporting the development of the country's energy sector.

Senator Muhammad Aurangzeb highlighted the ongoing energy reforms, state-owned enterprise (SOE) reforms, and privatisation efforts being undertaken by the government of Pakistan. He emphasized the government's strong commitment to collaborating with international companies and placed significant value on foreign investment.

Minister Muhammad Aurangzeb expressed his gratitude to the delegation for their interest in Pakistan's energy sector and reiterated the government's commitment to fostering mutually beneficial partnerships with global investors.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with the delegations from Global Consulting Firm Kearney and Public Private Partnership Authority (P3A) at Finance Division today.

The Kearney delegation provided an overview of their workflow and functions, detailing their ongoing engagement under SIFC program to restructure public entities. They updated the Finance Minister on the current status of their engagement with P3A, noting that the list of entities for restructuring is being finalized. The delegation also mentioned that they are in the process of identifying priority areas for intervention.

Senator Aurangzeb acknowledged and appreciated the valuable support provided by Kearney. He reiterated his belief in the critical role of public-private partnerships (PPPs) in driving the country’s development, emphasizing that the private sector must take a leading role in this process. The Finance Minister also highlighted the Government’s ongoing efforts in privatization and state-owned enterprises (SOE) reforms as integral to this strategy.

The meeting underscored the commitment of both Kearney and P3A to advancing public sector restructuring and the broader privatization agenda, with a shared focus on enhancing the role of the private sector in national development.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb presided over a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at Finance Division today.

The meeting was attended by Minister for Housing & Works Mian Riaz Hussain Pirzada, Minister for Maritime Affairs Mr. Qaiser Ahmed Sheikh, Minister for Economic Afairs Mr. Ahad Khan Cheema, Governor SBP, Chairman SECP, and other senior officers of the relevant ministries.

The Committee considered the summaries presented by Finance Division for the categorization of their relevant State-Owned Enterprises (SOEs) as strategic/ essential or otherwise. The Cabinet Committee on SOEs approved the re-merger of National Security Printing Company (NSPC) with Pakistan Security Printing Corporation (PSPC), and directed the Ministry of Finance and SBP to complete the formalities and present the implementation plan before the Committee. The Cabinet Committee further approved that National Bank of Pakistan (NBP), being a part of Sovereign Welfare Fund, is exempted from SOE Act 2003, hence not required to be categorized, whereas EXIM Bank be categorized as Essential SOE.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with the Managing Director of Jacobs, Cordova and Associates Mr. Scott Jacobs at Finance Division today. Secretary Board of Investment and officials from relevant ministries/divisions were also present in the meeting.

The meeting focused on the subject of regulatory reforms aimed at improving regulatory environment in the country to improve entrepreneurship, innovation and investment. Mr. Jacobs presented a comprehensive proposal to streamline the regulatory system, suggesting a thorough review of standardized processes to achieve significant results.

Senator Muhammad Aurangzeb acknowledged the importance of these reforms and underscored the need for impact-driven assistance to ensure the successful implementation of these reforms. The discussions also centered on identifying specific areas where reforms are urgently needed to optimize operations and regulatory frameworks. Both parties agreed on the importance of a structured approach to regulatory reforms.

Federal Minister of Finance and Revenue Senator Muhammad Aurangzeb, along with Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik, visited the Regional Tax Office (RTO) Lahore, today. They were warmly received by Chief Coordinator Tajir Dost Scheme Mr. Naeem Mir, Member Operations Mir Badshah Khan Wazir, Chief Retailers Registration Nazia Zaib, Chief Commissioner RTO Lahore Mr. Ahmad Shuja Khan, and their teams, along with trade representatives. During visit, the Federal Minister inaugurated the Central Secretariat for Tajir Dost Scheme in Lahore. RTO Lahore provided a comprehensive briefing on the Scheme’s operations and impact.

The Finance Minister appreciated the performance of Tajir Dost Scheme in Lahore and stressed the importance of its effective implementation and the collection of advance taxes. The Federal Minister also engaged with trade representatives, listening to their suggestions on improving the Scheme. He instructed that these recommendations be implemented efficiently to enhance the Scheme’s effectiveness.

RTO Lahore currently holds the leading position in Pakistan with the highest number of trader registrations, totaling 24,814 till date.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division today.

The meeting was attended by the Minister for Industries & Production Rana Tanveer Hussain, Minister for Petroleum Mr. Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Economic Affair Mr. Ahad Khan Cheema, Governor SBP, Chairman SECP, Dy Chairman Planning Commission, MD PASSCO, Chairman TCP, Federal Secretaries, and other senior officials of the relevant ministries.

The Cabinet Committee approved the proposal of Ministry of Industries & Production for import of 100,000 MT Urea. This decision is aimed at ensuring sufficient supplies of urea in the market. This will also ensure stability of prices of fertiliser during the cropping season.

The Ambassador of France to Pakistan Mr. Nicolas Galey called on Minister of State for Finance & Revenue Mr. Ali Pervaiz Malik at Finance Division today.

Minister Ali Pervaiz Malik provided an overview of Pakistan’s economic progress, highlighting positive trends such as increased foreign exchange reserves, decreased inflation, and a robust stock market, all corroborated by recent ratings from international agencies. He outlined key reforms underway, including privatization initiatives, energy sector advancements, and restructuring of state-owned enterprises (SOEs). The discussion also covered the Federal Board of Revenue's (FBR) digitization initiative, which is being implemented with support from McKinsey to enhance tax administration and compliance. The Minister of State highlighted the budget for 2024-25, focusing on strategies to expand the tax base by integrating untaxed segments and encouraging non-filers to comply. Significant projects in customs and inland revenue aimed at improving digitization and operational efficiency were also discussed.

Ambassador Mr. Nicolas Galey expressed appreciation for the excellent reforms undertaken by Pakistan and offered technical support from France in areas of mutual interest. He recognized the progress made by the Government of Pakistan in stabilizing the economy and expressed confidence in the potential for further collaboration.

Looking ahead, both parties affirmed their commitment to deepen economic relations, exploring investment opportunities, and expanding bilateral trade.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and Minister for Power Sardar Awais Ahmad Khan Leghari held a meeting with the delegation of Port Qasim Electric Power Company (PQEPC) led by CEO PQEPC Mr. Liang.

The PQEPC delegation briefed the Minister that the operations of the power company as well as certain issues faced by them due to overdue receivables. The delegation emphasized that PowerChina, is a major state-owned Chinese enterprise and key investor in Pakistan's energy market. The company would continue to work with the Government of Pakistan and play it's role in the improvement of Power sector.

The Finance Minister welcomed the suggestions made by the delegation and stated that the Government of Pakistan acknowledges and appreciates the investment made by PQEPC China and other Chinese companies in the power sector of Pakistan. He said that the Minister of Finance and Energy would continue to coordinate with the stakeholders to find and implement sustainable solutions to the power sector issues.

The PQEPC delegation expressed gratitude to the Finance Minister for his constructive feedback and support. The head of the delegation offered full support of the company to work on ways to address power sector issues.

Ambassador of the Federal Democratic Republic of Ethiopia to Pakistan H.E. Mr. Jemal Beker Abdula to Pakistan called on Minister for Finance & Revenue Senator Muhammad Aurangzeb at Finance Division today.

The Finance Minister extended a warm welcome to Ambassador Abdula and provided an overview of the economic reforms currently underway in Pakistan. These reforms are part of a broader home-grown agenda aimed at achieving economic stability. The Minister highlighted recent positive developments, including improvements in foreign exchange reserves, state-owned enterprise (SOE) reforms, and advancements in the power sector. International Rating agencies have started acknowledging the economic stability as a result of Government's economic decisions. Country’s economic outlook has improved as confirmed by recent Fitch reports and now government aims at achieving economic sustainability.

Ambassador Abdula praised and appreciated Pakistan’s macroeconomic stability and shared insights on Ethiopia’s similar approach to home-grown economic reforms. He detailed Ethiopia’s initiatives inspired by Pakistan’s experience, particularly in stabilizing its currency and fostering economic resilience. The discussion also encompassed the potential for enhanced bilateral trade and financial collaborations to foster mutual prosperity. Ambassador Abdula proposed the exploration of educational cooperation, specifically the promotion of student exchange and scholarship programs. This initiative aims at providing Ethiopian students with opportunities to study in Pakistan, fostering educational and cultural ties between the two nations.

Senator Muhammad Aurangzeb agreed on the importance of fostering deeper ties between the two nations and welcomed the proposed collaborations. Both parties acknowledged the mutual benefits that can be derived from such partnerships and expressed commitment to further strengthening the bilateral relationship.

Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired the meeting of the Committee on the issues of Gilgit-Baltistan. The meeting was attended by Minister for Kashmir Affairs & Gilgit-Baltistan Engr. Amir Muqam, Minister for Finance-GB Muhammad Ismail, Minister for Agriculture-GB Mohammad Anwar, Ex CM GB Hafiz Hafeez Ur Rehman, Chief Secretary GB, Member WAPDA and other officials from relevant Ministries.

The meeting commenced with a detailed briefing by the Chief Secretary, who outlined the issues faced by the GB government. Some of these issues were related to insufficient fund allocations and delays in PSDP projects which lead to employee related and other liabilities. The Chief Secretary advocated for solar power projects designed to address the region’s growing energy needs. He also proposed initiatives for the digitization of land records and the expansion of airports to enhance tourism potential. These proposals aim to modernize GB’s infrastructure and capitalize on its natural beauty, further contributing to the region's economic development.

Senator Muhammad Aurangzeb expressed his appreciation for the well-thought-out proposals and underscored the importance of reforming GB's administrative and fiscal frameworks. He emphasized that these reforms are vital for both the welfare of the local population and the stimulation of tourism. The Finance Minister acknowledged the concerns of GB government and reiterated the Government's commitment to support GB's development for overall economic growth.

The meeting was attended by Federal Minister for Finance & Revenue Mr. Muhammad Aurangzeb, Federal Minister Maritime Affairs Qaiser Ahmed Sheikh, Minister of State for Finance,Revenue & Power Mr. Ali Pervaiz Malik, CEO TDAP Zubair Motiwala, Chairman FBR Malik Amjed Zubair Tiwana along with members of KCCI.

In the beginning, Mr. Zubair Motiwala and members of KCCI welcomed the Finance Minister on his first visit to KCCI and expressed appreciation for PM Shehbaz Sharif's consistent efforts to support the business community, highlighting his regular meetings with KCCI members which contributes to more than 50% of total textile exports of Pakistan.

Finance Minister Mr. Muhammad Aurangzeb thanked the KCCI leadership for organizing the event.

The Finance Minister discussed structural issues in the economy pointing towards current accout deficit. "This is our fundamental problem so our growth should be based on diversification and export-driven”.

On the issue of removal of investigative audits raised by members of KCCI, he replied, “Until and unless enforcement is done through investigative audits, Pakistan cannot survive as a country so it is a must. We have to increase our tax base otherwise the cost of doing business will further increase”. He added KCCI should also consider positive aspects, “Huge tax refunds are paid by government to the business community which amounts to Rs50 billion to facilitate businesses”.

Regarding SOEs and rightsizing of government bodies, Finance Minister Muhammad Aurangzeb said, “Leakages, corruption have prompted rightsizing of certain government entities and it will be done by the ministry on case to case basis”.

Then Maritime Minister Qaiser Ahmed Sheikh said, “the Finance Minister is aware of the problems and as he belongs to the corporate sector himself so it’s a good sign for all of us”. He also added that in order to facilitate business community, “KPT has reduced its warehouse cost and will also work on Saturdays as well for our business people”.

Mr. Ali Pervaiz State Minister Finance, Revenue and Power added, “tariff rationalisation of electricity and gas is being carried out to facilitate business community”. On taxation load, he said, “our tax base should be widened and so we have taken a paradigm shift based on income earned irrespective of salaried class or business class”. On the issue of SRO 350, Mr. Ali Pervaiz emphasized,” KCCI should form one committee to synchronize the payment mechanism”.

Finally, FBR Chairman Mr. Malik Amjed Zubair Tiwana immediately extended the date of biometric verification till 30th August 2024 and said, “a notification will be issued by tomorrow”.

On the matter of eliminating Fixed Tax Regime raised by KCCI, Finance Minister Muhammad Aurangzeb said, “everything will come under Normal tax regime to ensure trust and credibility. The fixed charges on electricity have been reduced. Deferred tax will be automated and done in real-time”.

In his concluding remarks, the Finance Minister highlighted the potential to get FDI from Chinese industries. Pakistan can import raw materials and export the value added products. He ended the meeting by thanking all media persons and members of KCCI for their presence.

Karachi, 30th July 2024 – Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb addressed the Executive Committee of the Pakistan Banks Association (PBA) on Tuesday, highlighting key initiatives and discussing the macroeconomic situation in the country.

The PBA meeting was attended by all prominent members, including presidents of all leading banks of Pakistan, along with the Chairman PBA and President of the Bank of Punjab Zafar Masood, Chairman FBR, Minister of State Mr. Ali Pervaiz Malik, as well as the Director to Finance Minister Mr. Sheharyar Ahmad.

Muhammad Aurangzeb stated, "It is encouraging to see the private sector taking proactive steps in advancing financial and technological infrastructure. The collaboration with SIFC and the focus on corporate farming are critical for our economic growth."

The Finance Minister (FM) further stated that extensive talk has been conducted on the Macro aspect, but moving on the external financing front, the government is comfortable with the current situation. We are moving forward with the IMF draft resolution.
The Minister also emphasized the importance of public-private partnerships, particularly with HBL and NBP, stating, "We need to create capacity and move forward. The FM laid emphasis on aiming to get back into the International Capital Markets and ensure we reach the ranking of B- to reach the minimum ranking for any finance sector to enter the International Capital Markets, as we currently acquired a rating of CCC+.

The Minister continued discussing the macroeconomic situation. "We are aware of the current challenges, but with the IMF's core approval, we believe the situation is manageable. It is essential to continue focusing on agriculture and support initiatives like SIFC."

He further noted, "We are urging the private sector to take ownership and lead these transformations."

The Minister also emphasized the importance of public-private partnerships, particularly with HBL and NBP, stating, "We need to create capacity to get the cash flow lending moving and move forward.

"The agriculture sector and IT industry, especially freelancers, need proper fund allocation. It is time for private banks to step up in terms of financing and fund allocation," he stated.

Addressing the energy sector, Muhammad Aurangzeb noted, "The development sector is facing issues with additional taxation, high energy costs, and high interest rates. While competitive energy tariffs are not currently available, progress can still be made. The large-scale manufacturing sector is also facing challenges, but we are working on providing support where possible."

The Minister concluded by urging banks to focus on agriculture financing and data collection. The meeting concluded with an announcement that next week, the International Finance Corporation (IFC) will be expecting banks to share their updates and initiatives.

Minister for Finance & Revenue Senator Muhammad Aurangzeb was called on by the Ambassador designate to the USA Mr. Rizwan Saeed Sheikh at Finance Division today.

The Finance Minister congratulated Mr. Sheikh on his new appointment as Ambassador to USA and underscored the importance of bilateral relations between the two countries. He shared insights from his visit to Washington D.C. for the Spring Meetings and informed about the recent Staff Level Agreement with the International Monetary Fund (IMF). The Minister also elaborated on Pakistan’s economic reform agenda, focusing on key areas such as energy reforms, State-Owned Enterprise (SOE) reforms, and privatization efforts.

Ambassador Rizwan Saeed Sheikh expressed keen interest in collaborating closely with the Finance Ministry. He affirmed his commitment to showcasing Pakistan’s economic reforms agenda on the international platform. The Ambassador also conveyed his gratitude to the Finance Minister for his warm wishes and support.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with the Chairman Prime Minister’s Youth Programme Rana Mashhood Ahmad Khan at Finance Division today.

Rana Mashhood Ahmad Khan provided an overview of the Prime Minister’s Youth Business and Agriculture Loan Scheme which promotes entrepreneurship among youth by providing business loans on simple terms and with less markup through Commercial, Islamic and SME banks. The discussion covered the current structure of the scheme, including its three operational tiers, and explored the potential benefits and logistics of introducing additional tiers.

Senator Muhammad Aurangzeb appreciated the programme and recognized it as a valuable scheme for supporting small and medium enterprises (SMEs). He expressed support for the initiative, highlighting its role in stimulating entrepreneurial activity and contributing to economic growth.

The meeting underscored the Government's commitment to enhancing opportunities for the youth and promoting sustainable business development across the country.

Today, Senator Muhammad Aurangzeb Minister for Finance & Revenue and Sardar Awais Ahmad Khan Leghari Minister for Power held meetings with Mr. Pan Gongsheng, Governor of People’s Bank of China (PBoC) and Mr. Ren Jingong, Vice Administrator National Energy Administration (NEA). Ambassador Khalil Hashmi and officials of the Embassy accompanied the Ministers.

In meetings with high-ranking officials from the Chinese institutions the Ministers briefed about the government’s reform agenda and engagement with the IMF. The discussions focused on the significant strides made by Pakistan in improving its macroeconomic indicators by focused reforms in taxation, energy and privatization of the state-owned enterprises. The reforms has already started showing their results, particularly, reducing inflation from 38% to 13% marks a substantial achievement for the economy. Additionally, the stabilization of the exchange rate and the bolstering of foreign exchange reserves were highlighted as key factors contributing to the economic upturn. There was consensus was that such reforms are indispensable for achieving long-term stability and fostering sustainable economic growth. The Governor's recognition of Pakistan's policy measures reflects a broader international perspective on the importance of economic resilience and the positive impact of prudent fiscal management.

Underlining Pakistan’s plan to launch Panda Bonds, Minister for Finance briefed PBoC and other Financial Institutions about the steps taken so far and sought cooperation of the Chinese institutional investors in the capital market and seek benefit from the pro-business policies of the new Government.

Lauding President Xi Jinping’s Belt and Road Initiative (BRI) both the Ministers noted the achievements during the first phase of the China-Pakistan Economic Corridor (CPEC), a flagship project of BRI, for strengthening the infrastructure in energy, transport sectors along with others. It was highlighted that during the next phase of CPEC, focus is on strengthening b2b cooperation, with private sector playing the central role in the development and economic growth.

In a meeting with Vice Administrator NEA, Minister for Power expressed government’s conviction to introduce energy reforms aimed at enhancing efficiency of power sector by addressing systemic issues and cutting transmission losses. He appreciated NEA for signing the MoU on improving governance of the Power Sector and expressed resolve to fast-track implementation of the agreement.

The Ministers also met Executive Vice President of China Development Bank (CDB), President of National Association of Financial Market Institutional Investors (NAFMII), Chairperson of Silk Road Fund (SRF), Chairman of China International Capital Corporation (CICC).

On the instructions of the Prime Minister, the two Minister paid an official visit to Beijing from 24-26 July 2024 as part of the Government’s efforts to implement consensus reached at the leadership level during the former’s recent visit to China.

Senator Muhammad Aurangzeb, Minister for Finance & Revenue and Sardar Awais Ahmad Khan Laghari, Minister for Energy met with Mr Lan Fo’an Minister of Finance China in Beijing. Ambassador Khalil Hashmi and other senior officials of the Embassy were also present.

Minister for Finance underscored the special significance of China-Pakistan financial and banking cooperation in the all weather and iron-clad strategic cooperative partnership between the two countries and thanked the Chinese side for its invaluable economic and financial support to Pakistan in time tested way. He informed the Chinese side about the Government’s economic reform agenda, including the efforts to strengthen tax revenue generation, energy and SOE reforms and achieve sustainable growth. He described the recently concluded agreement between the IMF and Pakistan as an important enabler to execute the reform agenda.

The Minister for Energy outlined the ongoing reforms in the energy sector. He emphasized the government’s resolve to successfully overcome the operational and organizational challenges. The Minister of Finance of China appreciated the Government of Pakistan’s resolve for a strong economic recovery while assuring China’s continued support to Pakistan’s economic development, including through high-quality development agenda and assured the continued support for Pakistan in the strategic partnership. He explained the Chinese experience of structural reforms over the last 30 years and suggested that this could be a good example for Pakistan to emulate. Mr Lan emphasized that both countries have a longstanding partnership

Later, Senator Muhammad Aurangzeb Federal Minister for Finance & Revenue and Sardar Awais Ahmad Khan Laghari Minister for Energy (Power Division) also held a useful meeting with the President of China Export and Credit Insurance Corp (SINOSURE) at its Headquarters and discussed the latest reform agenda of the government of Pakistan.

During the meeting, both ministers lauded SINOSURE’s role in the development of Pakistan, particularly during the first phase of CPEC. They showed confidence that SINOSURE will continue its full support for completing ongoing and new projects under the second phase of CPEC especially now led by the private sector.

President of China Export and Credit Insurance Corp (SINOSURE) welcomed the delegation and reiterated Sinosure’s commitment towards the execution of socio-economic uplift projects under CPEC including B2B projects.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb had a zoom meeting with the representatives from Moody’s Ratings at Finance Division today. The meeting was also attended by senior officials of the Ministry.

The Federal Minister commenced the session by giving an update on Pakistan’s economic outlook. He highlighted the foreign exchange reserves surpassing USD 9 billion, stable CPI inflation at 12.6%, and a robust 7.7% increase in foreign remittances, reflecting economic resilience. He emphasized a 30% rise in tax collection in FY 2024 and outlined reforms to broaden the tax base, including new agricultural taxes and digital initiatives at the FBR. He also noted that over 150,000 retailers have registered as first-time taxpayers, marking a significant stride towards broadening the tax base. The Minister mentioned the ambitious targets aimed to increase revenues by 3% of GDP by FY 2027, with plans for a primary surplus of 1% of GDP, demonstrating Pakistan's commitment to fiscal sustainability and growth.

Furthermore, Minister Muhammad Aurangzeb updated Moody’s representatives on the successful completion of Pakistan's 9-month Stand By Arrangement with the IMF, emphasizing its positive impact on macroeconomic indicators. He highlighted multilateral institutions' confidence in financing Pakistan's developmental projects and apprised Moody’s of Pakistan's recently finalized Staff-Level Agreement (SLA) with the IMF for a new medium-term program. The Minister underscored ongoing reforms in the energy sector and State-Owned Enterprises, including privatization and rightsizing efforts aimed at improving operational efficiency and governance.

Moody’s Ratings representatives appreciated the comprehensive briefing and expressed confidence in Pakistan's economic trajectory underpinned by robust fiscal reforms and strategic initiatives.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb presided over a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at Finance Division today.

The meeting was attended by Minister for Housing & Works Mian Riaz Hussain Pirzada, Minister for Maritime Affairs Mr. Qaiser Ahmed Sheikh, Minister for Commerce Mr. Jam Kamal Khan, Minister for Law & Justice Mr. Azam Nazeer Tarar, Minister for Economic Afairs Mr. Ahad Khan Cheema, Deputy Chairman Planning Commission, Governor SBP, Chairman SECP, Federal Secretaries and other senior officers of the relevant ministries.

The Committee considered the summaries presented by different Ministries/Divisions for the categorization of their relevant State-Owned Enterprises (SOEs) as strategic/ essential or otherwise.

The Cabinet Committee after detailed discussion decided that National Insurance Company Limited (NICL), State Life Insurance Company Limited (SLICL) and Pakistan Re-Insurance Company Limited (PRCL) did not meet the criteria of strategic or essential SOEs and would not be categorized as essential for the public sector. The Ministry of Commerce was further directed to explore Public Private Partnership model for the Pak Expo Company.

The committee considered the summary presented by the Ministry of Science & Technology and approved to rename and restructure STEDEC into Indigenous Research and Development Agency (Pvt) Limited (IRADA). It was further directed to constitute its board and operationalize the entity by December 2024. The CCoSOEs approved the proposals of Aviation Division and Ministry of Communications for the appointment of candidates as Independent Directors on the Boards of PIA Holding Company Board, Pakistan Postal Services Management Board (PPSMB) and Postal Life Insurance Company Limited (PLICL). The committee directed M/o Communications to present proposals for categorization of these entities at the earliest.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb had a zoom meeting with the representatives from Fitch Ratings led by Senior Director Mr. Thomas Rookmaker, Directors Asia Pacific Sovereign Mr. Krisjanis Krustins and Mr. Jeremy Zook, today. The meeting was also attended by senior officials of the Ministry.

The Finance Minister provided an extensive update on Pakistan's current economic landscape starting with the successful completion of Pakistan's 9-month Stand By Arrangement with the International Monetary Fund (IMF), emphasizing its positive impact on the country's macroeconomic indicators. He highlighted Pakistan's foreign exchange reserves reaching USD 9.4 billion, robust stock exchange performance, and CPI inflation at 12.6% in June 2024. He noted a 7.7% rise in foreign remittances. Addressing fiscal reforms, Minister Muhammad Aurangzeb emphasized the government's efforts to broaden the tax base, citing a substantial 30% increase in tax collection during FY 2024 compared to FY 2023. Furthermore, more than 150,000 retailers have registered as first time tax payers. The IT exports crossed the figure of USD 3 billion. He reiterated the government's commitment to further improve the tax-to-GDP ratio as part of ongoing fiscal consolidation measures. The discussions encompassed ongoing reforms in the energy sector and State-Owned Enterprises, including privatization and rightsizing of federal government entities to streamline operations and improve governance.

The Federal Minister informed the rating agency about multilateral institutions' confidence in financing Pakistan's projects and briefed them about Pakistan's Staff-Level Agreement (SLA) finalized in July 2024 with the IMF for a new medium-term program aimed at bolstering Pakistan’s homegrown economic reform agenda. The Federal Minister apprised the Fitch representatives of salient features of the new programme which includes setting a target of increasing our revenues by 1.5% of GDP in FY 2025 and by 3% over the coming 3 years. A primary surplus of 1% of GDP will also be achieved for FY 2025.

The representatives from Fitch Ratings appreciated the ambitious targets and fiscal measures adopted by the Government of Pakistan and acknowledged the improvement in economic indicators.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired the first steering committee of the FCDO- funded Revenue Mobilisation, Investment and Trade (REMIT) programme. British High Commissioner, Jane Marriot co-chaired the meeting. The meeting was attended by Deputy Chairman of the Planning Commission, Dr. Jehanzeb Khan and senior government officials.

Reviewing the work done by the programme in the areas of revenue mobilisation, investment climate, macroeconomic governance and trade, with cross-cutting themes of gender and climate change, the Minister appreciated the overall progress to date and also emphasized the need for government stakeholders to be more proactive in taking up implementation. He added that the government intends to take up short, medium and long-term initiatives to ensure the economic revival of Pakistan. He emphasized that the government's focus on inclusive economic growth can be complemented by the support of development partners with a focus on performance and implementation.

The Minister also appreciated the technical assistance provided, stressed on consolidation of interventions and on speeding up on government implementation for impact.

Jane Marriott, thanked the minister for his interest in the programme interventions and commitment to reform that will take Pakistan forward. She assured of FCDO's full support to the government on high priority areas.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb was called on by the representatives of Pakistan Mobile Phone Manufacturers Association (PMPMA) at the Finance Division today. Senior officials from the relevant ministries attended the meeting.

The PMPMA delegation thanked the Finance Minister and highlighted the necessity for a stable and supportive policy environment that encourages local manufacturers. They advocated for measures to ensure that international brands support the domestic industry and consequently, the national economy. The delegation also presented proposals aimed at promoting the growth of the local industry and increasing the exports of the mobile phone manufacturing industry.

Senator Muhammad Aurangzeb acknowledged the valuable feedback and underscored the government's commitment for expanding the entire digital ecosystem in the country. He emphasized the importance of maintaining policy continuity and increasing the focus on the policy framework for exports. The Minister reaffirmed the Government’s commitment for fostering export-led growth and providing a conducive environment for local manufacturers.

The meeting concluded with a mutual agreement on the need for a strategic and supportive policy framework aimed at fostering local manufacturing and enhancing export potential, thereby contributing to the broader goals of national economic growth and digital transformation.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb was called on by a delegation from British International Investment (BII) Board at the Finance Division today. The meeting was attended by CEO BII Mr. Nick O’Donohoe, Chairperson Ms. Diana Layfield, MD & Head of Asia Mr. Srini Nagarajan, Regional Director South Asia Mr. Habib Yousaf, Development Directors Mr. Alex Woods & Ms. Jo Moir, Senior Economic Advisor Mr. Louie Dane, and officials from Finance Division.

The Finance Minister extended a warm welcome to the delegation and provided an overview of Pakistan's improving economic landscape including GDP growth rate of 2.4% for FY 24, which is expected to improve to about 3.6% in FY 25, buildup of foreign exchange reserves to USD 9.4 billion, revived confidence of investors in the capital markets and decrease in CPI inflation at 12.6% in June 2024, and increase in foreign remittances by 7.7% as compared to last year He highlighted the successful completion of 9-month Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) and government’s commitment to achieve sustainable economic growth in future under a fund supported medium term program, negotiations for which are underway.The Minister also underscored that increasing Tax to GDP ratio to about 13.7% in the medium term is the priority of the government through increasing tax base and FBR's end-to-end digitization He further outlined the initiatives being undertaken in energy sector to reduce the cost of generation and privatization of DISCOs. It was further highlighted that the Government is working on SOE reforms, privatization, rightsizing the government and bringing in investment through Public Private Partnership. Importance of FDI was highlighted and the role of SIFC in bringing in FDI in the priority areas of energy sector, agriculture sector and IT sector was discussed.

The delegation from British International Investment appreciated the Government's initiatives to stabilize the economy and enhance the investment environment, they also expressed interest in investing in the energy sector, particularly in improving transmission system. The Federal Minister encouraged the delegation to engage with the Special Investment Facilitation Council (SIFC), highlighting it as a pragmatic platform that attracts foreign investments and provides a streamlined process for investors.

Ambassador of Spain to Pakistan, H.E Ms. Jose A. de Ory called on Minister for Finance & Revenue, Senator Muhammad Aurangzeb at Finance Division today.

The Finance Minister welcomed the Ambassador and discussed the cooperation and longstanding relations between the two countries. He gave an update on some of the indicators including building up of foreign exchange reserves to USD 9.4 billion, robust performance of the stock exchange, declining trend of inflation rates with CPI inflation clocking in at 12.6% in June 2024, and increase in foreign remittances by 7.7% as compared to last year. He also highlighted the successful conclusion of the 9-month Stand-By Arrangement (SBA) with the IMF and apprised about the government’s intention to continue with the economic reform agenda under a fund supported medium term program. He emphasized the commitment of the government to achieving economic stability by increasing tax to GDP ratio through increasing tax base, as tax collection during FY 2024 increased by 30% as compared to FY 2023, and improving the tax administration through digitization, fiscal consolidation, Energy Sector reforms, SOE reforms, privatization and efforts to increase FDI. It was further emphasized that export-led growth is the agenda of the government for which, along with traditional sector, agriculture and IT sectors are also being encouraged through different policies of the government.

The Spanish Ambassador appreciated Pakistan's macroeconomic stability and the Government's efforts towards the economic reform process for sustainable economic growth. He urged the Government of Pakistan to enhance value addition in exports, emphasizing the potential for deeper collaboration between Spain and Pakistan in value added sectors.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb met the Executive Vice President Oceania & South Asia PARCO Mr. Mehmet Celepoglu accompanied by CEO & MD Total PARCO Mr. Asif Iqbal at the Ministry of Finance today.

Mr. Celepoglu expressed appreciation for the Government of Pakistan for its robust macroeconomic performance, emphasizing its positive impact on the business environment. He expressed gratitude for the Government’s proactive measures significantly benefiting the industry. The delegation requested facilitation regarding sales tax refunds and documentation procedures with the SBP.

The Finance Minister appreciated the business plans of PARCO in Pakistan and thanked the delegation for their constructive feedback. He highlighted the substantial increase in Pakistan’s foreign exchange reserves and underscored the ongoing support from multilateral institutions and the IMF, which are expected to further stabilize the economic landscape. The Federal Minister also outlined the Government’s efforts to enhance the tax-to-GDP ratio & tax base to improve economic growth and fiscal discipline and reiterated investment facilitation processes of the Government.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired the Advisory Committee meeting on the “Release of International Mobile Telephony (IMT) Spectrum for Improvement of Next Generation Mobile Broadband Services in Pakistan” at Finance Division today. The meeting was attended by the Minister of State for IT and Telecom Ms. Shaza Fatima Khawaja, Chairman PTA and senior officials from relevant ministries and departments.

The key stakeholders from the telecommunication sector and regulatory authorities briefed the Finance Minister on strategic plans for the allocation and utilization of the IMT spectrum. It was mentioned that the release of this spectrum is expected to significantly improve connectivity, enhance internet speeds, and meet the increasing demand for high-quality data services. The auction process, technical specifications, and the timeline for the spectrum release were discussed in the meeting. The Advisory Committee also considered the way forward to promote technological advancements and create an environment conducive to investment and growth in the telecommunications sector.

This meeting underscores the government’s commitment to advancing digital infrastructure and supporting the country's economic growth.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb was called on by the Representatives of Rice Exporters Associations of Pakistan (REAP) at Finance Division today. Member-Custom Policy FBR and Member-IR Policy also attended the meeting.

Representatives from REAP thanked the Finance Minister and briefed on the growth of agriculture sector particularly rice crop. They highlighted the strengths of their sector and presented some tax measures for consideration.

Senator Muhammad Aurangzeb appreciated the delegation for their role in the bumper production and export of rice, raising the overall export volume to $8 billion. He highlighted the pivotal role of agriculture sector as one of the engines of economic growth, emphasizing its significance in driving national prosperity. The Minister emphasized the importance of enhancing rice yields for improved quality and value addition. He assured exporters of the Government's support, encouraging them to persist in their efforts to further strengthen Pakistan's position in the global market.

The meeting concluded on a positive note with mutual commitment to fostering growth in the agriculture sector and maximizing export potential.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb presided over the fourth meeting of the Governing Council (GC) of Pakistan Single Window (PSW) at Finance Division today. Secretary Commerce, Chairman FBR, Secretary to the Governing Council/Member Customs FBR, CEO PSW, experts from PSW GC and senior officers from other ministries attended the meeting.

The Secretary to the Governing Council updated the Finance Minister on the implementation status of decisions taken in the last meeting. CEO PSW presented a comprehensive overview of the PSW system's implementation and the execution of directives issued by the Governing Council. He provided the details of ongoing PSW projects, outlined performance benchmarks, and mentioned challenges encountered in implementation, requesting necessary interventions.

Acknowledging the efforts of PSW, the Finance Minister directed them to expedite the process of implementation. He underscored the need to ensure the involvement of all stakeholders including provinces and prioritize the security of the system. Furthermore, the Federal Minister reaffirmed the Government's support for the reforms initiated under the PSW program and directed PSW to strengthen its outreach to facilitate the trade and business activities across Pakistan.

The Minister for Finance and Revenue, Senator Muhammad Aurangzeb held a meeting with the delegation of Standard & Poor’s (S&P) Global Rating Agency led by Directors of Sovereign & International Public Finance Ratings Mr. Yee Farn Phua and Mr. Andrew David Wood, at Finance Division today. The meeting was also attended by senior officials of the Ministry.

Finance Minister welcomed the S&P delegation and gave an update on Pakistan’s current economic situation. He highlighted the successful completion of the 9 month Stand By Arrangement (SBA) with IMF and the improving macroeconomic indicators of Pakistan. Minister for Finance & Revenue highlighted some of the indicators including building up of foreign exchange reserves to USD 9.4 billion, robust performance of the stock exchange, declining trend of inflation rates with CPI inflation clocking in at 12.6% in June 2024, and increase in foreign remittances by 7.7% as compared to last year. He emphasized the Government's efforts to broaden the tax base as tax collection during FY 2024 increased by 30% as compared to FY 2023 and also to further improve the tax-to-GDP ratio. The ongoing reforms in the energy sector, and State-Owned Enterprises including privatization were discussed. Furthermore, the Federal Minister underscored the confidence shown by multilateral institutions through their financing for various projects in Pakistan.

Senator Muhammad Aurangzeb also informed the delegation that Pakistan is currently holding talks with IMF on a new medium term program to support Pakistan’s economic reform agenda. The Finance Secretary reiterated the stable yet optimistic outlook and elaborated on the economic reform agenda of the government, which is reflected in the FY 25 budget.

The delegation from S&P Global appreciated the fiscal measures adopted by the Government of Pakistan and acknowledged the improvement in economic indicators.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb was called on by the Chairman Nestle Pakistan Syed Yawar Ali and Ex-President Farmers Association of Pakistan Mr. Afaq Ahmed Tiwana in Finance Division today. Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik and Member-IR Policy FBR also joined the meeting.

The meeting focused on exploring avenues for enhancing the growth of Pakistan's agriculture and livestock sectors. Syed Yawar Ali shared insights on the current state of these sectors and emphasized their potential to significantly increase yield productivity and exports. He and Mr. Afaq Ahmed Tiwana conveyed their appreciation to the Government for prioritizing agriculture and livestock in its policy framework. They proposed the establishment of a dedicated body tasked with formulating evidence-based policies to foster sectoral growth and exports, leveraging input from professionals and research experts.

Senator Muhammad Aurangzeb thanked the delegation for their constructive proposals. He underscored the Government's commitment to supporting these vital sectors through enhanced financing mechanisms. The Minister assured that relevant ministries would be consulted to consider the proposed framework, aiming to translate it into actionable policies that drive tangible results.

The meeting concluded on a positive note, with all parties expressing optimism about the potential for collaborative efforts to uplift Pakistan's agriculture and livestock sectors, thereby contributing to national economic growth and prosperity.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb was called on by the President and CEO of Pak Matiari-Lahore Transmission Company (PMLTC) Ms. Zhang Lei accompanied by Deputy CEO Mr. Ma Desheng and CFO Mr. Wang Bo at Finance Division today.

Ms. Zhang Lei extended her congratulations to Senator Muhammad Aurangzeb on assuming office and appreciated the Government's efforts in driving reforms and structural developments across various sectors. She provided an overview of China Electric Power Equipment and Technology Co. Ltd. (CET) and its ongoing projects in several countries. Ms. Lei briefed the Minister on the progress of the Matiari-Lahore HVDC project and discussed potential opportunities in Pakistan pertaining to hybrid renewable energy and hydrogen production. The delegation also raised some issues related to currency conversion and sales tax recovery from the National Transmission and Dispatch Company (NTDC).

The Finance Minister acknowledged the contributions of PMLTC to infrastructure development and assured the delegation of required support through relevant government channels. He highlighted the importance of successfully concluding the IMF program to bolster foreign exchange reserves and underscored the ongoing reforms in Pakistan's power sector.

The meeting concluded on a positive note, with both parties expressing optimism about future collaborations aimed at advancing Pakistan's energy landscape and fostering economic growth.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb had a meeting with the Founder & Chairman Delivery Associates Sir Michael Barber at Finance Division today. The meeting was also attended by Development Director British High Commission Ms. Jo Moir, Senior Governance Advisor Mr. Matt Clancy, Governance Advisor BHC Mr. Naveed Aziz, Senior Economic Advisor Mr. Louie Dane and officials from Finance Division.

Sir Michael Barber appreciated the Federal Budget 2024-25 and the structural reforms in taxation implemented by the Government of Pakistan. Recognizing the challenges involved, he discussed the priority areas of Pakistan's homegrown economic plan. Sir Michael reaffirmed the commitment to continuing support, building on previous collaborative efforts with Pakistan.

The Finance Minister thanked Sir Michael for his acknowledgment and appreciated the support of UK government. He outlined key priority areas for the Government comprising of taxation reforms, energy sector reforms, and restructuring of State-Owned Enterprises (SOEs). Emphasizing the importance of structural reforms within the framework of the IMF program, the Federal Minister highlighted initiatives aimed at enhancing exports, attracting Foreign Direct Investment (FDI), and the privatization efforts. He underscored the government's focus on export-led growth and the digitalization of the Federal Board of Revenue (FBR) to ensure transparency and expand the tax base.

The meeting concluded with a commitment to enhance collaboration between both parties, focusing on mutual strategic goals and sustainable economic development.

CEO K-Electric Syed Moonis Abdullah Alvi accompanied by CFO KE Muhammad Aamir Ghaziani and Chief Regulatory Affairs Muhammad Imran Qureshi called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at Finance Division today.

The representatives from K-Electric stated that the agreement signed between the government and KE earlier this year had addressed a number of issues and KE was now vigorously working on implementing the new generation projects to improve its electricity mix. The delegation raised the issue of delayed payments of KE’s consumer bills collected through the post office.

Senator Muhammad Aurangzeb assured the K-Electric delegation that the matter of delayed payments would be addressed. He asked the KE team to focus on improving service delivery in Karachi and to expedite its plan for adding cheaper generation capacity, so that the cost of electricity could be brought down.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, extended his heartfelt congratulations to Ms. Rachel Reeves on her historic appointment as the Chancellor of the Exchequer. Ms. Reeves has made history as the first female to hold this prestigious position in British history.

Senator Aurangzeb commended Ms. Reeves on her remarkable achievement and expressed his optimism for strengthened financial cooperation and bilateral relations between Pakistan and the United Kingdom under her leadership.

A delegation of Pakistan Tax Bar Association led by PTBA President Anwar Kashif Mumtaz called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at Finance Division today. Chairman of the Federal Board of Revenue (FBR) Malik Amjed Zubair Tiwana was also present in the meeting.

The PTBA delegation appreciated the efforts of the Government to increase the tax base and conveyed their perspectives on optimizing tax documentation process to enhance efficiency.

The Finance Minister acknowledged the valuable feedback from the PTBA delegation and underscored the government's commitment to digitalization efforts aimed at reducing human intervention and increasing transparency within the tax administration. He highlighted the pivotal role of IT sector as one of the engines of economic growth. The Minister also encouraged the delegation to provide essential data to FBR to refine and strengthen the country's tax system.

The meeting concluded with a mutual commitment to ongoing collaboration and dialogue aimed at achieving enhanced fiscal efficiency and economic development.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb presided over a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at Finance Division today.

The meeting was attended by Minister for Housing & Works Mian Riaz Hussain Pirzada, Minister for Maritime Affairs Mr. Qaiser Ahmed Sheikh, Minister for Industries & Production Rana Tanveer Hussain, Minister for Law & Justice Mr. Azam Nazeer Tarar, Minister for Economic Afairs Mr. Ahad Khan Cheema, Deputy Chairman Planning Commission, Chairman SECP, Federal Secretaries and other senior officers of the relevant ministries.

The Committee considered the summaries presented by different Ministries/Divisions for the categorization of their relevant State-Owned Enterprises (SOEs) as strategic/ essential or otherwise. The Cabinet Committee approved the summaries presented by Power Division, Ministry of Industries & Production, and the Ministry of Overseas Pakistanis & Human Resource Development, while the agenda of Petroleum Division was deferred for further deliberations.

Group Chief Executive of Standard Chartered Bank PLC Mr. Bill Winters called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at Finance Division today. Standard Chartered Pakistan CEO Mr. Rehan Shaikh and Head CCIB Pakistan Mr Arslan Nayeem were also present in the meeting.

Mr. Bill Winters appreciated the ongoing efforts of the Government of Pakistan to bring about economic stability and the significant improvements in macroeconomic indicators. He also acknowledged the strides made in the banking sector and appreciated the government's initiatives in this regard. Expressing Standard Chartered's commitment to supporting Pakistan's economic aspirations, Mr. Winters highlighted the bank's eagerness to assist Pakistan in accessing international capital markets. He proposed introducing new products and financial instruments tailored to meet the evolving needs of the Pakistani market.

The Finance Minister appreciated Mr. Winters visit to Pakistan, which signifies Standard Chartered's commitment to the country. He reiterated the government's focus on stimulating economic growth by committing to streamline processes and ensure a stable regulatory environment. He highlighted Pakistan's enhanced foreign exchange reserves and the robust performance of the stock market. The Minister also mentioned the government's focus on areas of mutual interest such as climate financing, SME and youth loan schemes, aimed at promoting inclusive growth and development. The Minister thanked Mr. Winters and his team for presenting his proposals on improving Pakistan's domestic banking industry, partnering with multilateral institutions, and enhancing Pakistan's access to international capital markets.

The Federal Minister for Finance and Revenue, Senator Mr. Muhammad Aurangzeb, held a meeting with the Executive Committee Members of P@sha (Pakistan IT industry Association) led by Chairman P@sha Mr. Muhammad Zohaib Khan.

The Executive Committee Members of P@SHA highlighted the organization's ongoing initiatives and the need for government support in promoting growth in IT sector.

Senator Mr. Muhammad Aurangzeb acknowledged the significant contributions of P@SHA and assured the association of government's support. He reiterated the commitment of the government to provide a conducive environment for the IT industry, recognizing its potential to drive economic growth and innovation in Pakistan.

The meeting concluded with a mutual commitment to continue working together to address the challenges and harness the opportunities for the IT sector.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb presided over a meeting of the Economic Coordination Committee (ECC) at the Finance Division today.

The meeting was attended by the Minister for Petroleum Mr. Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance & Revenue Mr. Ali Pervez Malik, representatives from Oil and Gas Regulatory Authority, Federal Secretaries, and other senior officers of the relevant ministries. The Cabinet Committee approved the summary proposals presented by the Petroleum Division related to natural gas sale pricing.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division today.

The meeting was attended by the Minister for Industries & Production Rana Tanveer Hussain, Minister for Petroleum Mr. Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Planning Development & Special Initiatives Mr. Ahsan Iqbal, Minister of State for Finance & Revenue Mr. Ali Pervez Malik, Governor SBP, Dy Chairman Planning Commission, Federal Secretaries, and other senior officers of the relevant ministries.

The Cabinet Committee gave approval of the following Technical Supplementary Grants (TSGs) to various Ministries/Divisions:

1. Rs. 607.03 million to the Ministry of Aviation to provide for the Employee Related Expenses.
2. Rs. 10.477 million to the Communications Division to meet the expenses on account of Adhoc Relief Allowance.
3. Rs. 803.025 million to the Defence Division for PSDP Project titled “Establishment of National Aerospace Science & Technology Park (NASTP) in Project Aviation City Pakistan (ACP).
4. Rs. 8.625 billion to the Military Accountant General and AGPR for the payment of pensions.
5. Rs. 12.1 billion to the Finance Division to pay off liability of Government of Sindh on account of abolition of Octroi and Zila Tax.
6. Rs. 293 million to the Finance Division in favour of the Department of Auditor General of Pakistan to make mandatory payments.
7. Rs. 1.086 billion to the Finance Division for settling pending claims of ZTBL under Prime Minister’s fiscal package for agriculture in wake of Covid-19.
8. Rs. 1.3 billion to the Ministry of Foreign Affairs to meet the requirements of Mission Abroad.
9. Rs. 366.263 million to the Ministry of Information & Broadcasting to meet the contractual obligations and complete the Primary Data Center of the Project.
10. Rs. 96.480 million to the Ministry of Information & Broadcasting pertaining to publicity campaign on Defence Day.
11. Rs. 2.5 million to the Ministry of Interior as an award of outstanding performance by Mr. Arshad Nadeem, Pakistan Olympic Athlete.
12. Rs. 29.131 million to the Ministry of Interior for payment to NTS for Screening Test of Recruitment in ICT Police.
13. Rs. 130 million to the Ministry of Interior to provide ICT Police for the payment of POL charges and clearance of liabilities.
14. Rs. 112.417 million to the Ministry of Law & Justice for the regularization of pay and allowances of Law offices.
15. Rs. 428.806 million to the Ministry of Maritime Affair for development projects in Gawadar.
16. Rs. 49.781 million to the National Disaster Management Authority (NDMA) to fulfill its obligatory payments.
17. Rs. 7.987 billion to the Planning Commission for clearance of liabilities for the 7th Population & Housing Census.
18. Rs. 4,228.429 million to the Federal Board of Revenue (FBR) for clearing the liabilities of foreign funded projects of FBR.
19. Rs. 444.271 million to the Ministry of Interior for the allocation to Federal Investigation Agency (FIA) to meet employee related expenses.

The Cabinet Committee also approved the summary of Finance Division to utilize the funds of Rs. 355.640 million established by Government of Pakistan – Policy Committee and allocate it to National Disaster Management Authority for flood relief assistance. Another summary of Finance Division to launch the “Risk Coverage Scheme for SMEs” was also approved with the direction to monitor and evaluate the scheme on quarterly basis. The ECC also gave the principle approval to the Finance Division for the establishment of Pension Fund. The Committee also approved the proposal of Defined Contributory Scheme for the new entrants w.e.f. 1st July, 2024, and for armed forces w.e.f. 1st July, 2025.

ECC further approved the summary of Ministry of Information Technology & Telecommunication to return Rs. 11.13 billion to Universal Service Fund (USF) to meet the budget shortfall. The committee approved the request of the Ministry of Railways for additional funds and allowed grant of Rs. 2 billion to clear pending liabilities.

A delegation of Pakistan Business Council (PBC) led by Chairman PBC Mr. Shabbir Diwan called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at Finance Division today. Minister of State for Finance & Revenue Mr. Ali Pervez Malik, Chairman of the Federal Board of Revenue (FBR) Malik Amjed Zubair Tiwana also attended the meeting.

The delegation from the Pakistan Business Council (PBC) appreciated the ongoing efforts of government and discussed the Federal Budget 2024-25 with the Finance Minister. They also presented specific suggestions and tax proposals for consideration.

Federal Minister Muhammad Aurangzeb acknowledged and thanked the PBC for their insights. He assured that their recommendations are being noted and will be considered in the finalization of the budget to whatever extent possible. The Minister also highlighted the FBR's ongoing efforts aimed at broadening the tax base and bringing retailers in tax net. He assured that decisions would be made through mutual consultation to ensure favorable outcomes for both the public and the business community.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb presided over a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) at Finance Division today.

The meeting was attended by Minister for Housing & Works Mian Riaz Hussain Pirzada, Minister for Maritime Affairs Mr. Qaiser Ahmed Sheikh, Minister of Federal Education and Professional Training of Pakistan Khalid Maqbool Siddiqui, Federal Secretaries and other senior officers of the relevant ministries.

The Committee considered the summaries presented by different Ministries/Divisions for the categorization of their relevant State-Owned Enterprises (SOEs) as strategic/ essential or otherwise.

Cabinet Division presented summaries related to Pakistan Tourism Development Corporation (PTDC) and Printing Corporation of Pakistan (PCP). The Cabinet Committee directed Cabinet Division to initiate the process for winding up of PTDC by clearing the ongoing litigations etc. The Committee also directed that PCP’s Board be reconstituted in line with SOE Law & Policy & and business viability plan presented to the Committee, before a final decision is taken on the future of the entity.

The CCoSOEs also considered the summaries of the Ministry of Housing & Works relating to PEPAC & National Construction Limited (NCL). The committee approved the proposal for winding up of PEPAC. It also directed the authorities to complete the ongoing projects of the NCL and prepare the plan for winding up its operations.

The committee further approved the proposals presented by the Ministry of Maritime Affairs regarding categorisation of the Port Authorities i.e. Port Qasim Authority (PQA), Karachi Port Trust (KPT), and Gawadar Port Authority (GPA) as Essential. The Committee was informed that port operations were already outsourced in a number of cases & this policy will continue. The Committee directed M/o Maritime Affairs to ensure that the governance framework of Port Authorities is compliant with the SOE law. To this end the Ministry will initiate amendments to their respective statutes.

The summary presented by Power Division to consider the recommendations of Board Nominations Committee (BNC) regarding boards of Electricity Distribution Companies (DISCOs) was approved by the Cabinet Committee, which contained nominations for Boards of 9 electricity distribution companies.

The Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee (ECC) of the Cabinet at Finance Division today.

The meeting was attended by the Minister for Industries & Production Rana Tanveer Hussain, Minister for Petroleum Mr. Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance & Revenue Mr. Ali Pervez Malik, Federal Secretaries, and other senior officials of the relevant ministries.

The Cabinet Committee gave approval of the following Technical Supplementary Grants (TSGs) to various Ministries/Divisions:

1. Rs. 126.848 million to the Cabinet Division for clearing the requirements of outstanding custom duties / taxes.
2. Rs. 29 million to the President Secretariat to meet the expenditures under “Employee Related Expenses”.
3. Rs. 5,400 million to the Ministry of National Health Services, Regulations & Coordination in favour of Federal Directorate of Immunization (FDI) for the immunization activity.
4. 4.92 billion to the Ministry of Kashmir Affairs & Gilgit-Baltistan on account of salary & allowances, family assistance packages and social initiatives in education and health sector in Gilgit-Baltistan.
5. Rs. 6,596 million to the Ministry of National Food Security & Research for payment of pending liabilities to PASSCO.
6. Rs. 370 million to the Ministry of Housing and Works to pay the pending liabilities.
7. Rs. 332 million to the Ministry of Economic Affairs for developing Somali National Identification System by NADRA.
8. Rs. 14,250 million to the Finance Division as Rupee cover to facilitate the successful implementation of the Women Inclusive Finance Project.
9. Rs. 96.9 million to the Finance Division for the implementation of Audit Management Information System (AMIS).
10. Rs. 5 billion to Defence Division as seed money for Green Tourism Pakistan Project.
11. Rs. 23.945 billion to the Defence Division against pay shortfalls for current fiscal year.
12. Rs. 10 billion to the Ministry of Interior for the clearing of pending liabilities of ration for Headquarters Fontier Corps and Headquarters Gilgit-Baltistan Scouts.
13. Rs. 0.6 billion to the Ministry of Interior for raising of 3 additional Corps Headquarters.
14. Rs 5.986 million to the Ministry of Interior to meet additional fund requirements.
15. Rs. 9.576 million to the Ministry of Interior for National Academy for Prison Administration.
16. Rs. 87 million to the Ministry of Interior in respect of Headquarters Frontier Corps KP.
17. Rs. 4,637 million to the Ministry of Interior in respect of Civil Armed Forces for meeting the operational requirement and pending liabilities of ration.
18. Rs. 168.834 billion to the Economic Affairs Division on account of revised budget estimates for FY 2023-24.

Furthermore, the proposal of the Ministry of Federal Education & Professional Training to exempt HEC from Relending Policy of Foreign Loans/Credits to autonomous bodies was approved. The ECC also approved a proposal of Petroleum Division for release of Rs. 9 billion for clearing the outstanding claims of OMCs including PSO on account of price differential claims.

The proposal of Ministry of Industries & Production for the export of 0.15 million MT of surplus sugar was approved by ECC with the condition that in the event of a rise in retail price of sugar, the permission to export would be revoked. It was also directed that it may be ensured that export proceeds be utilized by the mills for clearing the overdue payments to farmers.

The Cabinet Committee also approved the summary of Power Division for the repayment of Rs. 82 billion finance facility extended to PHL by OGDCL. It was decided that OGDCL would also clear its liabilities towards GoP from the funds received through this arrangement.

Chief Minister of Gilgit-Baltistan Mr. Gulbar Khan called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at Finance Division today. The Federal Finance Secretary was also present in the meeting.

Chief Minister Gulbar Khan expressed gratitude to the federal government for its continued support, particularly the wheat subsidy provided to the region. He highlighted several areas where GB requires further assistance and appealed for increased support in the upcoming budget to address these issues.

In response, the Finance Minister, Senator Mr. Muhammad Aurangzeb emphasized the numerous opportunities available in GB, noting its potential as a prime location for tourism. He pointed out that the region is rich in gems and mineral resources and suggested that GB government can leverage its resources to generate revenue and unlock its true potential. The Finance Secretary also recognized the potential areas for investment in GB, reiterating that the federal government has generously supported the region in the budget.

The meeting concluded with a mutual commitment to continue working together to address the challenges and harness the opportunities in Gilgit-Baltistan for the benefit of its residents.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb had a meeting with the Korean Ambassador and representatives of Korean Companies working in Pakistan at the Finance Division today. The Secretary, Ministry of Communications, Chairman National Highway Authority (NHA), MD Private Power & Infrastructure Board (PPIB), and senior officers from relevant ministries were also present in the meeting.

The Korean Ambassador appreciated the Government's economic initiatives and strong bilateral relations between Pakistan and Korea. He emphasized the need to fully exploit the untapped potential for further collaboration. Representatives from Korean companies briefed the Minister on their concerns regarding project timelines and operational efficiency.

The Finance Minister underscored the significant macroeconomic improvements and noted the positive trend in foreign exchange reserves. Furthermore, Senator Mr. Muhammad Aurangzeb reiterated the commitment of the Government to address the challenges faced by Korean companies operating in Pakistan and in this regard urged the relevant authorities to ensure their facilitation for smooth business operations.

The meeting concluded with a pledge to strengthen economic cooperation between Pakistan and Korea and to work collectively towards addressing mutual concerns for the benefit of both nations.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Mr. Jason Lamb, Deputy Director, Focus Country Implementation of Bill & Melinda Gates Foundation at the Finance Division today. The meeting was also attended by Minister of State Mr. Ali Pervaiz Malik, Member Reforms FBR, and CEO Karandaaz.

During the meeting, the Federal Minister conveyed his appreciation for the Bill & Melinda Gates Foundation's for their support in engaging McKinsey & Co. for the ongoing digitalization of FBR. He emphasized the significant potential of e-governance in Pakistan, noting that the digitization of the tax system is a pivotal step towards modernizing tax collection, which will enhance transparency and revenue growth. Senator Mr. Muhammad Aurangzeb also mentioned the necessary improvements required in existing data sources to effectively utilize them for tax purposes. The Minister of State Mr. Ali Pervaiz Malik discussed the implementation challenges of RAAST, Pakistan's instant payment system, and ways to improve its functionality.

The meeting concluded with a strong note of commitment from all parties involved to continue working together towards these goals.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met with Mr. Tom Isherwood, Regional Head of Technology and Tax McKinsey & Co. along with McKinsey Partner Mr. Ali Malik at Finance Division today. Minister of State Mr. Ali Pervaiz Malik was also present in the meeting.

The Finance Minister emphasized the need for investment in technology and fostering a cultural shift towards digital governance. He underscored the Government’s commitment to improve tax collection through the Federal Board of Revenue's (FBR) ongoing efforts in digitization. The Minister also cited that the data from PRAL (Pakistan Revenue Automation Limited) and REMIT can be utilized in digitizing FBR’s tax system. The discussions covered the possibility of achieving quick wins by leveraging this data and implementing daily reporting through dashboards to monitor progress in real-time.

Minister of State, Mr. Ali Pervaiz Malik, discussed how the ongoing exercise could be enhanced by efficiently generating, organizing, and analyzing data. He stressed the importance of a data-driven approach to improve overall project outcomes.

The McKinsey team thanked the Minister for Finance and Revenue for the meeting and assured the Finance Minister that they would ensure the completion of exercise within the given time frame.