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.