Aurangzeb | Pakistan

Finance Minister Muhammad Aurangzeb said on Sunday that the recent report by the International Monetary Fund (IMF) that highlighted financial irregularities in Pakistan was “not criticism” but a “catalyst for accelerating long-overdue reforms”. The document’s publication, a precondition for the IMF’s approval for disbursing the next $1.2 billion loan tranche in December, found that institutional weaknesses, lack of transparency in state functions, preferential treatment for select businesses, and inefficiencies in public-sector transactions were major constraints to growth. It also called for a series of reforms spread across the next three to six months to help raise the growth rate to 5-6.5 per cent over the next five years. The report led to criticism of the government, and opposition parties have called for a probe into the “worst financial scandal of Pakistan’s history”. However, Aurangzeb said during a press conference in Islamabad today that the government itself had requested and facilitated the asses...

Finance Minister Muhammad Aurangzeb said on Wednesday that unchecked population growth and climate change are hindering Pakistan from becoming a $3 trillion economy. Pakistan is home to a vast population of over 251 million, according to World Bank figures. In 2023, the population growth rate was reported to have reached around 2.55 per cent. However, almost 45pc of Pakistan’s population lives below the poverty line, according to a World Bank report. At the same time, Pakistan has been ranked as the most vulnerable country to climate change in 2022, according to the Global Climate Risk Index 2025. “I have been clear right from the beginning that we have two existential issues because if we don’t tackle them correctly … there are two reasons that could derail us from becoming a $3tr economy and those are climate change and population growth,” said the finance minister in an interview on Geo News show ‘Capital Talk’. Aurangzeb said the former was no longer merely “an academic discussion” but something “we are l...

Finance Minister Muhammad Aurangzeb has said he is “quite hopeful” that Pakistan could manage to achieve GDP growth of close to 3.5 per cent during the ongoing fiscal year despite the impact of recent floods. The finance czar shared this projection during an interview on CGTN America programme ‘One on One’, which was published on Tuesday. During the interview, the finance minister was asked how big a challenge the recent floods posed to economic recovery. To that, Aurangzeb began his reply by underlining that climate change was an “existential issue for Pakistan”. “We are living it day in and day out,” he said. He then went on to recall previous floods and their impact, and stated: “We grew at 3pc GDP last year. We had estimated that we would grow a little over 4pc this year, but now, given the flood situation, this will shave off a certain percentage around that. But, I am still quite hopeful that we can manage anything close to 3.5pc during this fiscal year.” At the outset of the interview, the finance mini...

Finance Minister Muhammad Aurangzeb met his Saudi counterpart on the third day of his ongoing US visit, the finance ministry said on Thursday, adding that the former briefed the latter about the privatisation process of the Pakistan International Airlines (PIA) and key airports. The meeting was held on the sidelines of the plenary meetings of the International Monetary Fund (IMF) and World Bank (WB) in Washington, D.C., where Aurangzeb arrived on Sunday on a six-day trip. A foreign ministry statement issued today said Aurangzeb continued a series of high-level meetings in the US capital, including his engagement with Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan. “He apprised his Saudi counterpart of the ongoing privatisation process of Pakistan International Airlines (PIA) and key airports, underscoring the government’s resolve to attract strategic investments through transparency and efficiency,” it added. The development comes after a parliamentary committee was informed last month that the PIA Co...

Finance Minister Muhammad Aurangzeb has left for the United States to participate in the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB), state-run Radio Pakistan reported on Saturday. The visit comes after a IMF mission concluded talks with Pakistani authorities on reviews of two lending programmes totalling $8.4 billion without announcing a staff-level agreement (SLA). A day earlier, the finance minister had expressed optimism that the SLA with the IMF would be finalised next week during his visit to Washington. According to the Radio Pakistan report, the minister will participate in more than 65 events, forums, ceremonies, and meetings during his six-day visit to the US. “During his visit, the finance minister will represent Pakistan at the plenary meetings of the IMF and the WB,” the report added. It further said that Aurangzeb would meet with senior officials from the IMF, the WB, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency...

Finance Minister Muhammad Aurangzeb on Wednesday said that talks with the International Monetary Fund (IMF) were headed in the “right direction”. An IMF mission led by Iva Petrova held a formal kick-off meeting with Pakistan’s economic team to review the implementation of the EFF and RSF. The programme’s performance as of the end of June this year — the period under review — has been mixed. The start of the next review period, ending December this year, has also been off the mark, particularly in revenue collection. The two sides now have to agree on corrective measures during their dialogue to meet the next biannual targets. Today, Aurangzeb spoke to reporters as he left a meeting of the Senate Standing Committee on Finance and Revenue in Islamabad. The minister told reporters that the $7.1 billion Extended Fund Facility (EFF) and the $1.1bn Resilience and Sustainability Facility (RSF) were being reviewed. “So far, so good,” he said. The EFF is undergoing its second review, while the RSF is being reviewed fo...

Finance Minister Muhammad Aurangzeb has hailed the Rs1.2 trillion bank loan secured to settle Pakistan’s circular debt as the “largest financing and largest restructuring transaction” in the country’s history. On Wednesday, the government signed loan facilities worth approximately Rs1.225tr with 18 banks to settle the outstanding dues of Independent Power Producers (IPPs) parked in circular debt. These dues will be serviced through a Rs3.23 per unit surcharge on consumers for a period of six years. The signing ceremony was held at the PM Office, witnessed virtually by the prime minister from New York. No official announcement was made, although ministers confirmed the signing of the agreement. Under the agreement, the government will have 30 days to request disbursements from banks for prompt utilisation to avoid penalties. Today, the ceremony was aired on television, with both the premier and the finance minister addressing the gathering. In his remarks, Aurangzeb said that facility “resolves the structural ...

Finance Minister Muhammad Aurangzeb has said the government aims to follow the ongoing trade talks with the United States by discussing investment, terming it a potential “game-changer” for economic ties between the two countries. He made the remarks after meeting with US Secretary of Commerce Howard Lutnick and Trade Representative Ambassador Jamieson Greer on Friday as part of a critical round of trade talks aimed at securing tariff relief and expanding bilateral economic cooperation. “One thing we discussed was that we have to move beyond the immediate trade imperative, which is obviously very critical, but besides that, for the Pakistan-US relationship to be brought to the next level and bring in a real step change, [there is] an investment imperative that will hopefully emerge,” Aurangzeb said in a video statement. “Areas [for investment] have already been identified,” the minister said, mentioning minerals and mining, artificial intelligence, digital infrastructure and cryptocurrency. “We feel this will...

Finance Minister Muhammad Aurangzeb on Friday met with US Secretary of Commerce Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer in an effort to strengthen trade ties, according to a statement from the finance ministry. Pakistan and the US concluded a critical round of trade negotiations earlier this month, reaching an understanding on a deal that could shape the future of the country’s key export sectors. While both sides reached an understanding, a formal announcement is expected only after the US concludes similar ongoing negotiations with other trade partners. According to the finance ministry, Aurangzeb had a “productive meeting” with Lutnick and Greer in Washington DC, with both sides satisfied with progress made in enhancing trade ties. “They (Pakistan and the US) reaffirmed their commitment to exploring opportunities to strengthen these ties in all possible areas of mutual benefit,” the statement read. “Finance Minister Aurangzeb emphasised that the US remains Pakistan’s...

Finance Minister Muhammad Aurangzeb on Monday said that the additional powers granted to the Federal Bureau of Revenue (FBR) had nothing to do with income tax. The expanded enforcement powers for the FBR include the authority to block high-value financial transactions by non-filers — such as vehicle and property purchases, investment in securities and mutual funds, and opening certain prestigious bank accounts — along with powers to seal unregistered business premises, confiscate goods and recover taxes from firms, including those in the public sector. The move has generated criticism from many quarters. Addressing the matter in a press conference in Karachi today, Aurangzeb said, “I think there is something to understand about what the existing law was at the time. The first thing to understand is that it has no relation to income tax. This whole issue is a sales tax fraud issue.” The finance minister added that in the original law, Inland Revenue Service officers had the authority to arrest, and it was the ...

Finance Minister Muhammad Aurangzeb on Wednesday reaffirmed the government’s commitment to maintaining a consultative policy framework as the Pakistan Business Council (PBC) transitioned its leadership. Aurangzeb met with a delegation of the PBC led by outgoing Chief Executive Officer (CEO) Ehsan Malik and incoming CEO Javed Kureishi at the Finance Division, the division said in a press release. The minister welcomed the PBC’s transition in leadership and extended his full support to the incoming team, reaffirming the government’s commitment to maintaining an inclusive and ongoing consultative process with key stakeholders in the business community. During the meeting, Aurangzeb appreciated the constructive role played by the PBC, particularly acknowledging the value of its policy input, research, and the extensive sectoral data regularly shared with the government. He underscored the importance of evidence-based policymaking and informed the delegation that the Tax Policy Office had been relocated from the F...

Federal Finance Minister Muhammad Aurangzeb departed from Islamabad on Monday for Seville, Spain to participate in the Fourth International Conference on Financing for Development (FFD4) being held from July 1 to 3, 2025, according to a statement issued by his ministry . The global conference will bring together leaders, policymakers, and international development experts to explore innovative and sustainable financing strategies to accelerate progress towards the Sustainable Development Goals (SDGs), particularly for developing and emerging economies. During the visit, Aurangzeb will represent Pakistan in the main conference sessions and a range of high-level side events. On July 1, he will co-chair the multi-stakeholder roundtable on “Leveraging Private Business and Finance”, and deliver a keynote address at the International Business Forum (IBF) Policy Dialogue on “Accelerating EMDEs (Emerging Market and Developing Economies) Investment: The Role of Credit Ratings”. He is also scheduled to address the gene...

• Income tax for Rs50,000-Rs100,000 monthly salaries cut to 1pc • Solar panel import tax slashed from 18pc to 10pc • Opposition criticises lack of transparency on Senate finance committee report • Shibli Faraz says economy running unsustainably on loans ISLAMABAD: Under fire from parliamentarians and business leaders over a clause allowing tax officers to detain suspected evaders, Finance Minister Muha­mmad Aurangzeb told the Senate on Saturday that more safeguards have been added to the law to prevent misuse of authority. Speaking during the Senate debate on the Finance Bill 2025, Mr Aurangzeb said that detailed consultations were held with Senators Saleem Mand­viwalla and Farooq H. Naek, resulting in clearer and more balanced provisions, which will be shared during his upcoming speech in the National Assembly. The rollback follows strong push-back from business lobbies and both parliamentary committees, which argued that the original clause — allowing officers to detain suspects without external approval — ...

Finance Minister Muhammad Aurangzeb on Tuesday said that Pakistan and the US will continue to strengthen their economic partnership as both sides agreed to advance negotiations on reciprocal tariffs through constructive engagement, state-run Radio Pakistan reported. Pakistan faces a potential 29 per cent tariff on its exports to the US due to a $3 billion trade surplus with the world’s biggest economy, under tariffs announced by Washington in April on countries around the world. While speaking at an event in Islamabad today, Aurangzeb said he had a constructive and positive conversation with the US Commerce Secretary, Howard Lutnick, last night. He said that both countries are moving in the right direction. “The government will stay the course of reforms in taxation, energy and other sectors,” he said. “We have also carried out tariff reforms to move towards competitive economy.” Aurangzeb continued that both sides agreed to advance negotiations on reciprocal tariffs through constructive engagement, aiming to...

Finance Minister Muhammad Aurangzeb on Wednesday said lower government expenditures in the outgoing fiscal year were a “response” to previous “right pushback” from tax-paying individuals. He made the remarks during a post-budget press conference where he expanded upon the federal budget proposed yesterday for the upcoming FY25-26. Maintaining an aggressive stance on fiscal consolidation, as required by the Int­ernational Monetary Fund (IMF), Aurangzeb yesterday still managed to offer some notional relief to the salaried class in the federal budget for FY2025-26, along with incentives for the real estate and construction sectors to revive the struggling industrial sector and stimulate economic growth. Highlights: Finance minister links no hike in minimum wage with slower inflation Aurangzeb defends salary hike ‘after 9 years’ for NA speaker, Senate chairman FBR chief notes levy on solar panels due to ‘disadvantaged’ local assemblers FBR member explains rationale behind taxing high-value goods at different rate...

Finance Minister Muhammad Aurangzeb on Sunday hailed the results of the Ipsos Consumer Confidence Survey for the second quarter of 2025, saying the findings reflected the government’s successful microeconomic strategy over the last 14 months. The survey was conducted by Ipsos, a global market research firm that gathers insights on consumer behaviour, public opinion, and market trends. The firm uses methods like online polls, interviews, and focus groups across 89 countries. A press release by the Ministry of Finance said today that Aurangzeb welcomed the survey findings, calling them a strong affirmation of the improving economic outlook and public sentiment across Pakistan. “The survey reveals a significant surge in consumer confidence, with 42 per cent of Pakistanis now believing the country is heading in the right direction — the highest level recorded in six years,” the release said. Perceptions of the economy being strong also reached their most favourable levels since August 2019. Notably, optimism had ...