ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb here on Wednesday urged for a national shift from policy discussions to timely execution, warning that climate change and rapid population growth were the two most urgent existential threats facing Pakistan.
Speaking at the conference on “Building a Resilient Public Financial Management Ecosystem”, Aurangzeb said the country cannot afford to treat these challenges as academic.
The conference was organized by the Institute of Chartered Accountants of Pakistan (ICAP), in collaboration with the Chartered Institute of Public Finance and Accountancy (CIPFA).
“We are living through climate change every day—it’s not a future problem. From recent floods in Gilgit-Baltistan to the ongoing devastation in Punjab, the impacts are already here,” he said adding population growth was equally alarming.
Aurangzeb pointed to recent macroeconomic improvements, including Pakistan’s upgraded ratings by Fitch, S&P, and most recently Moody’s, as validation of the country’s economic direction.
He described this as a critical opportunity to move from stability to sustainable growth. “Macroeconomic stability is not the end—it’s a means to an end. We must now channel that stability into reforms and investments,” he said.
He also highlighted the government’s recent rollout of Pakistan’s first Green Taxonomy, calling it a crucial step to attract climate financing.
On taxation, Aurangzeb announced that tax policy has officially been shifted from the FBR to the Finance Division. This move, he said, reflects the need to align taxation with long-term economic strategy, rather than simply balancing books.
He also pointed to simplifications introduced in the latest budget, especially for the salaried class. Tax return forms that once required over 800 fields have now been reduced to 35–40 for most individual filers.
Taking about privatization, he said, that 24 State-Owned Enterprises (OEs) were currently in the pipeline, with some expected to see quick movement. While recognizing the political and operational sensitivities, he insisted the government must enable the private sector to lead economic activity. “The government should provide the ecosystem and get out of the way,” he said.
The Minister noted progress in pension reform, stating that a contributory system has already been rolled out for new civil service entrants as of July 2024.
Aurangzeb acknowledged that Pakistan has never lacked in drafting policies—whether on taxation, industry, or investment—but has consistently fallen short in implementation.
He concluded by inviting the private sector, regulators, and development partners to become active collaborators in Pakistan’s reform journey.
He emphasized that government institutions must focus on management discipline, saying as public servants, when we commit, we must deliver—on time.
On the occasion, two exclusive roundtable dialogues were held on Enhancing SOE Governance and Expanding Pakistan’s Tax Revenue Capacity.
These sessions gathered policymakers, regulators, development partners, and senior corporate leaders, providing a collaborative platform to deliberate on reforms, transparency, and strategies to strengthen fiscal resilience and institutional performance.
