Finance Minister Muhammad Aurangzeb on Monday emphasised that structural reforms are essential for achieving sustainable economic growth, saying that the government is introducing changes in key sectors, including taxation and energy, while pension reforms and right-sizing are also part of the broader reform agenda.
Addressing a joint press conference in Islamabad alongside Federal Minister for Energy Owais Leghari, Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, PM's Privatisation Advisor Muhammad Ali, and Salman Ahmad, the finance minister said the government is actively implementing its economic reform agenda.
Aurangzeb noted that international rating agencies have acknowledged Pakistan’s improving economic stability as a result of these measures.
He said Pakistan’s economic direction is on the right path, which is why the staff-level agreement with the International Monetary Fund (IMF) reflects confidence in the country’s macroeconomic stability.
The finance minister added that the recent reduction in the policy rate has had a positive impact on the economy.
He also acknowledged the financial support extended by Saudi Arabia, China, and other Gulf countries, calling their assistance a sign of renewed trust in Pakistan’s economic trajectory.
Speaking at the same event, Federal Minister for Energy Owais Leghari said the government is modernising the energy sector and that electricity prices have been reduced by around 10.5 percent over the past 18 months.
Leghari added that the government has made every possible effort to provide relief to the public where opportunities arose.
He also announced that the government would no longer purchase electricity, marking a major policy shift aimed at efficiency and sustainability.
Leghari reiterated that the government would no longer purchase electricity, allowing power companies to engage in inter-company trading instead.
He noted that a special task force on Independent Power Producers (IPPs) had achieved notable progress and that a comprehensive plan to address the circular debt had led to a reduction of Rs700 billion within a year.
Leghari added that the government has reduced electricity tariffs for industries by Rs16 per unit to enhance competitiveness.
Meanwhile, FBR Chairman Rashid Mahmood Langrial said that the measures approved in the budget regarding taxation are being fully implemented, though tax reforms require time to produce results.
He added that effective policy steps have already led to an increase in tax collection and a significant rise in the number of individual tax return filers.
The FBR Chairman stated that Pakistan’s tax-to-GDP ratio has now reached 10.3 per cent.
He also announced that the FBR would not impose any new taxes this fiscal year, emphasising the government’s focus on compliance and growth rather than additional taxation.
Speaking at a joint press conference, Privatisation Advisor Muhammad Ali announced the government has decided to fast-track the privatisation process by eliminating the traditional three-phase procedure.
He said that all state-owned entities eligible for privatisation would now be moved forward swiftly under the new policy.
Muhammad Ali emphasised that the privatisation of Pakistan International Airlines (PIA) remains the government’s top priority, adding that leading business groups are actively participating in the process.
He expressed confidence that the privatisation of PIA would be completed before the end of the current year.
He further said that the process to privatise the Zarai Taraqiati Bank Limited (ZTBL) is being advanced, while talks are underway with the United Arab Emirates (UAE) to hand over ground-handling services at Islamabad International Airport.
He added that bidding for Lahore and Karachi airports would also be held soon, and major international groups have shown interest in acquiring the Roosevelt Hotel.
Federal Minister Shaza Fatima Khawaja also spoke at the joint press conference, outlining the government’s ongoing policy measures and reaffirming its commitment to economic reforms and fiscal discipline.
Shaza Fatima said we are moving towards a cashless economy and are following the roadmap of the Digitisation Nation Pakistan. She said all institutions will be coordinated at the national level in the process of digitisation.
Addressing the media, Salman Ahmed said if there is an institution running at a huge loss like PASCO, it will be abolished.