ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday announced that the government will initiate a fact-based review of tariff rationalisation as part of a wider structural reform agenda designed to stabilise Pakistan’s economy and support formal industry. Speaking at the Pakistan Business Council’s Dialogue on the Economy 2025, the minister projected economic growth of 3.5% for the current year, with a forecast of 4% over the next two to three years and the potential to reach 6–7% in the medium term if agriculture, manufacturing and services continue to strengthen.
Aurangzeb said the government is shifting towards implementation-focused reforms, beginning with the inaugural session of the 11th National Finance Commission (NFC) Award on December 4. He expressed confidence that cooperation with provinces—built through the National Fiscal Pact—would continue. Acknowledging that high taxes, elevated energy costs and expensive financing are straining businesses, he said relief would be phased in and supported by structural changes.
He announced that Prime Minister Shehbaz Sharif has approved the abolition of export surcharges and the transfer of the Export Development Fund’s governance to the private sector. Tax policy has been moved from the Federal Board of Revenue (FBR) to the finance ministry, which is setting up a fully functional Tax Policy Office and advisory council. Aurangzeb said ongoing, year-round engagement with chambers and industry bodies will ensure more analytical and evidence-driven policymaking.
The minister highlighted significant progress in right-sizing the federal government, noting that half of all ministries have been reviewed and 54,000 vacant posts abolished—saving Rs56 billion annually. Several ministries and organisations are also being merged or closed. Digital Pakistan, he said, remains a priority, with efforts to expand digital payments, enhance government transparency and shift the economy from cash-based to documented.
On debt management, Aurangzeb said the Debt Management Office is being modernised and has already extended Pakistan’s average debt maturity to four years. A contributory pension scheme launched in July 2024 has enrolled over 9,000 new government employees and will be expanded to the defence forces next year.
He confirmed Pakistan will issue its first Panda Bond before the Chinese New Year and that a regulatory framework for the crypto economy is now operational through the Pakistan Virtual Asset Regulatory Authority.
Responding to investor concerns, Aurangzeb said security, macroeconomic stability and profit repatriation remain central to attracting global capital. He reaffirmed the government’s commitment to long-term reforms, pointing to early signs of recovery in key industries and renewed foreign investor interest, while cautioning that global geopolitical tensions and supply-chain shifts continue to pose risks.
