ISLAMABAD: Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday highlighted significant reforms in Pakistan’s energy sector and state-owned enterprises (SOEs), including ongoing privatization efforts of state companies.
During a meeting with a delegation from Standard & Poor’s (S&P) Global Ratings at the Finance Division, Aurangzeb emphasized the confidence multilateral institutions have shown through financing various projects in Pakistan. The S&P delegation was led by Directors of Sovereign and International Public Finance Ratings, Yee Farn Phua and Andrew David Wood.
Aurangzeb provided an update on Pakistan’s current economic situation, noting the successful completion of a nine-month standby arrangement with the International Monetary Fund (IMF) and improving macroeconomic indicators. Key improvements include building foreign exchange reserves to $9.4 billion, robust stock exchange performance, a decline in Consumer Price Index (CPI)-based inflation to 12.6% in June, and a 7.7% year-on-year increase in remittances from overseas workers.
He stressed the government’s efforts to broaden the tax base, evidenced by a 30% surge in tax collection during fiscal year 2023-24, aiming to further improve the tax-to-GDP ratio. Pakistan is currently in talks with the IMF for a new medium-term program to support the country’s economic reform agenda.
The finance secretary, present at the meeting, reiterated the stable and optimistic outlook, elaborating on the government’s economic reforms reflected in the FY25 budget. The S&P delegation commended Pakistan’s fiscal measures and acknowledged the improvement in economic indicators.
