ISLAMABAD: Finance Minister Muhammad Aurangzeb on Monday said that the burden of debt repayments is expected to ease as Pakistan moves towards macroeconomic stability, with efforts underway to implement long-term structural reforms and provide relief to the salaried class.
In a statement issued by the Ministry of Finance, Mr Aurangzeb said that key measures are being taken in the upcoming budget to reduce the tax burden on salaried individuals.
“Tax is deducted at the source when salaried people receive their income. We are taking steps to ease this burden,” he noted, adding that pension reforms are also under consideration. However, no final decision has been made regarding salaries for the civil and military sectors.
The minister reiterated the government’s commitment to long-term economic reforms, stating that initiatives are in place to bring transparency to the Federal Board of Revenue (FBR) by minimising human intervention. “We are also working on energy sector reforms and will introduce improvements in the debt management system in the next fiscal year,” he said.
Mr Aurangzeb addressed recent developments regarding Pakistan’s engagement with the International Monetary Fund (IMF), revealing that an attempt was made to disrupt Pakistan’s agenda in the IMF board by preventing a discussion on its case. “Despite efforts to derail the programme, Pakistan’s case was discussed on merit, and we have met all targets set by the IMF,” he said.
He confirmed that the IMF mission has returned and virtual talks between the two sides will continue this week. “Pakistan has the full support of the IMF,” the minister said.
On the broader economic front, Mr Aurangzeb expressed optimism, noting that the global community is acknowledging signs of Pakistan’s economic recovery. “The recent significant cut in the policy rate has positively impacted the economy,” he said.
The minister also highlighted ongoing efforts for institutional right-sizing and said the government is addressing challenges arising from population growth and climate change. He said reforms are being introduced to better respond to the climate crisis.
He added that recent meetings with international investors in Washington and London had yielded a “positive response” regarding Pakistan’s economic trajectory.
