ISLAMABAD: Finance Minister Muhammad Aurangzeb announced on Monday that Pakistan is implementing significant reforms in the tax, energy, and pension sectors aimed at ensuring long-term economic stability. He highlighted that these measures signify a transition from short-term solutions to a foundation of structural and sustainable improvements.
Addressing a press conference in Islamabad alongside FBR Chairman Rashid Mahmood Langrial, Energy Minister Awais Leghari, and IT Minister Shaza Fatima, the Finance Minister stated that the government’s reform agenda seeks to build on recent economic progress.
He added that achieving sustainable economic stability necessitates comprehensive reforms, declaring that macroeconomic stability has already been attained.
Aurangzeb stressed that international credit rating agencies have acknowledged the country’s positive economic trajectory, while the recent staff-level agreement with the IMF underscores this progress.
He announced reforms not only in the tax, energy, and pension sectors but also across public institutions to improve efficiency through a “right-sizing” initiative.
‘FBR Does Not Need to Impose More Taxes’
FBR Chairman Rashid Mahmood Langrial shared updates on tax system enhancements. He reported an 18 percent increase in income tax returns this year, bringing the total number of taxpayers to 5.9 million.
Langrial emphasized that further taxation measures are unnecessary at this stage since existing efforts have already boosted revenues effectively.
Govt to exit power purchasing business
Federal Energy Minister Awais Leghari revealed transformative changes in Pakistan’s energy sector, including the government’s decision to exit the power purchasing business described as the most significant energy reform in two decades.
He noted that steps had been taken to bring down electricity prices by Rs10.5 per unit over the past 18 months despite inheriting high power costs. Relief packages for industries included reduced tariffs, such as supplying electricity at Rs26 per unit for three months and lowering electric vehicle (EV) rates from Rs71 to Rs39 per unit.
Circular Debt
On tackling circular debt, Leghari disclosed a strategy to eliminate Pakistan’s Rs1.2 trillion debt within six years without imposing additional financial burdens on consumers. In just one year, Rs700 billion worth of circular debt was reduced through improved governance and operational efficiencies across power distribution companies.
The combined reforms across these critical sectors are intended to bolster Pakistan’s economic foundations and drive sustainable growth for years to come.
