ISLAMABAD: Finance Minister Muhammad Aurangzeb has emphasized that Pakistan and the United States are making steady progress in strengthening their strategic and economic partnership.
Speaking at an event in Islamabad on Tuesday, Aurangzeb shared that he had a positive and forward-looking discussion with U.S. Commerce Secretary Howard Lutnick the previous evening. He said both countries are aligned in their vision and moving constructively in the right direction.
The finance minister reaffirmed the government’s commitment to continuing reforms in key sectors including taxation, energy, and tariffs, aimed at fostering a competitive economic environment. He noted that the government has introduced tariff reforms and is committed to broader structural changes.
Regarding pension reforms, Aurangzeb termed the Defined Contribution Pension Scheme a mutually beneficial initiative for both the government and public sector employees. He added that pensions for retired government workers have been increased by 7%, reflecting inflationary trends. Additionally, he said a 5% tax has been proposed on pension amounts exceeding Rs. 10 million annually, while protecting lower and middle-income pensioners from additional tax burdens.
Earlier, in a virtual meeting with U.S. Commerce Secretary Lutnick, both sides agreed to expedite talks on reciprocal tariffs. The discussions focused on enhancing bilateral trade and investment and creating a framework for long-term, mutually beneficial economic cooperation.
It was agreed that technical-level discussions would continue in the coming days under a jointly defined roadmap to finalize key elements of the trade agreement.
