KARACHI: Finance Minister Muhammad Aurangzeb expressed confidence that the 29% reciprocal tariff imposed by the United States on Pakistani goods could be reversed. Addressing a press briefing at Federation House, Aurangzeb announced that Pakistan would soon send a high-level delegation to the US to address bilateral trade issues.
He clarified that the core issue with the US is not tariffs, but the significant trade imbalance. “Pakistan exports around $5 billion worth of goods to the US but imports only $2.1 billion. This disparity needs to be addressed,” Aurangzeb stated, adding that Pakistan would seek to boost imports in key sectors like soybean and cotton to create a healthier trade relationship.
The finance minister also shared that electricity tariffs have already come down and would be further reduced in July 2025, offering much-needed relief to consumers.
On fiscal policy, Aurangzeb made it clear that the upcoming budget would not grant tax exemptions to any sector. “Everyone must contribute. At present, salaried individuals bear 70% of the income tax burden, and they deserve relief,” he said.
He also reflected on his recent US visit, where he held over 70 meetings with institutions such as the IMF, World Bank, and key international partners. “They’ve all recognized macroeconomic improvements in Pakistan,” Aurangzeb remarked, pointing to rising foreign reserves ($14 billion) and a surplus in the current account.
The Monetary Policy Committee is expected to meet on May 5 to discuss interest rate cuts, which many, including FPCCI Acting President Saqib Fayyaz, have been urging due to improving economic indicators.
Aurangzeb reaffirmed that the 24th IMF program would be Pakistan’s last. He emphasized the pivotal role of various sectors, especially textiles, IT, and agriculture, in sustaining economic momentum. “Pakistan’s IT exports are currently at $3.2 billion with potential to reach $8 billion,” he added.
Regarding the Reko Diq mining project, he noted ongoing talks with the Exim Bank and others, highlighting its $2.8 billion annual potential.
The minister also said Pakistan is developing legal frameworks for emerging technologies like Blockchain and Web 3.0.
Responding to regional tensions, he criticized India’s decision to close the Central Asia transit corridor, warning it would damage Indian trade.
Separately, FPCCI officials called for a forensic audit of the faceless assessment system (FAS) and flagged concerns about the export sector’s performance under the normal tax regime.
