Aurangzeb Expresses Confidence in Pakistan’s Economic Recovery Path

ISLAMABAD: (Web Desk) – Federal Finance Minister Muhammad Aurangzeb has expressed confidence in Pakistan’s economic outlook, describing the current period as a significant moment for both the country and the global economy despite ongoing regional challenges.

Speaking in an interview with journalist Asma Sherazi on the program Faisla Aapka, Aurangzeb said the outgoing fiscal year concluded on a positive note, supported by improving economic indicators, revised growth projections and policy measures announced in the latest budget.

He revealed that the government has raised the current fiscal year’s growth estimate to between 3.4 and 3.7 percent and is targeting 4 percent growth in the next financial year. He added that inflationary pressures following regional tensions had prompted an increase in the policy rate from 10.5 percent to 11.5 percent.

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Highlighting investor confidence, Aurangzeb pointed to 11 initial public offerings (IPOs) during the year, calling them a strong sign of improving market sentiment and growing private-sector participation in the economy.

The finance minister also expressed optimism regarding the privatization of power distribution companies (DISCOs) and anticipated increased foreign investment from China, the United States and Gulf countries, particularly in minerals, mining, agriculture and information technology.

Discussing tax reforms, he noted that the super tax had been abolished for one slab and reduced for another, while the fixed tax regime for the IT sector had been retained to encourage export growth. He added that special attention had been given to supporting small and medium enterprises (SMEs) and the agriculture sector.

Aurangzeb said transaction taxes in the construction sector had been lowered to stimulate economic activity and facilitate investment. He acknowledged a rise in the petroleum levy but said the additional revenue was necessary to meet defence requirements amid the prevailing security environment.

The minister projected IT exports could reach $4.5 billion and emphasized the government’s commitment to creating opportunities for young entrepreneurs and technology-driven businesses.

On regional trade, Aurangzeb said Pakistan stands ready to expand economic ties with Iran if international sanctions are eased. He noted that both the government and exporters are prepared to capitalize on new trade opportunities and are evaluating mechanisms to address banking and financial settlement challenges.

He concluded by reaffirming the government’s commitment to structural reforms, expressing optimism that additional tax relief measures could be introduced once fiscal conditions allow.