In a special interview following the post-budget press conference, Federal Finance Minister Muhammad Aurangzeb laid out a clear and confident roadmap for Pakistan’s economic future.
Describing the 2025 budget as “the first in years without any serious objection,” the minister emphasized that real economic progress depends on long-overdue reforms and unified efforts between the federal government and provinces.
“This is a five-year economic reform plan, and we have to start somewhere,” Aurangzeb said, pointing out that tax collection reforms are central to the government’s strategy. “We cannot implement reforms or gather meaningful tax revenue without the cooperation of provinces.”
Addressing key concerns, the finance minister assured that salaried individuals have been given as much relief as possible under the current circumstances. At the same time, he stressed that difficult decisions were necessary to steer the country towards sustainable economic growth. “If we aim for real growth, then reform is not optional—it is inevitable.”
Aurangzeb highlighted several pressing challenges, including climate change and population pressure, calling them Pakistan’s “two biggest issues.” He also revealed steps being taken to boost industrial performance, such as reducing tariffs and integrating retail and wholesale sectors for better efficiency.
“Last year, 470,000 retail registrations were recorded—a promising start. But there’s more to be done,” he said, underscoring the need for tax collection reforms and expanding the tax net. While he admitted it’s hard to predict how many people will be added to the tax system, he insisted that enforcement and technology are the only way forward.
“We’re focusing heavily on digital invoicing and implementing a robust track-and-trace system to stop leakages in the revenue stream,” he explained. These measures, the minister believes, are vital for strengthening the system and moving Pakistan toward sustainable economic growth.
On the monetary front, Aurangzeb noted that policy rates are continuously coming down, signaling macroeconomic stability. “The country is now on the path to financial recovery, and our direction of travel is clear,” he said.
Ending on an optimistic note, he reminded that the government is committed to gradual revenue enhancement and increasing exports to lift the economy. “We can only meet our targets by walking together with the provinces,” he emphasized.
