During the pre-budget seminar for 2025 organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Federal Finance Minister Muhammad Aurangzeb stated that Pakistan’s economy has shown promising signs of recovery. Positive economic indicators suggest a downward trend in inflation and interest rates, an increase in home remittances and a current account surplus.
He indicated that the Finance Ministry would consider the federation’s budget recommendations and strive to accommodate them where applicable. Aurangzeb expressed optimism that Pakistan would meet the Federal Board of Revenue’s (FBR) tax collection target of Rs 12.33 trillion for Fiscal Year 2025 (FY25).
He remarked that this might be the last program involving the International Monetary Fund (IMF). Moreover, he highlighted the significant growth potential in the mineral, IT, and agriculture sectors, which will receive priority from the government. He stated that recently, Pakistan has started exporting autos, furniture, milk, and other products, and the government is ready to assist them amid the increase in exports, which have been struggling between $ 28 and $ 31 billion for the last many years.
Aurangzeb emphasised the need to improve the tax system, stating that an 8—to 9% tax rate is insufficient. He assured that efforts are being made to remove the element of harassment associated with taxes and that structural reforms are being implemented for the country’s benefit rather than at the request of the IMF.
Additionally, he mentioned that there is no room for shrinking the tax base or increasing tax exemptions, and efforts are underway to simplify the tax return process. During his recent visit to the United States, he met with several companies, discussed bilateral issues with finance ministers from various countries, and worked on the budget for the upcoming fiscal year.
Finally, Aurangzeb noted that the forthcoming privatisation program could yield favourable outcomes on the sale of national airlines and other state-owned enterprises.
He patiently listened to the trade and industry’s problems and assured them that they would be resolved.
