Finance Minister Muhammad Aurangzeb reform process is underway successfully and staff-level agreement has been reached with the IMF, reported 24NewsHD TV Channel.
Addressing a press conference in Islamabad, Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb, reaffirmed the Government’s strong commitment to an inclusive, private-sector-led and export-driven growth strategy.
The Minister highlighted the significance of the recent abolition of the Export Development Surcharge (EDS) - a levy in place since 1991 - as a major step taken by the Government to strengthen Pakistan’s export competitiveness. He noted that alongside governance reforms to the Export Development Fund (EDF), this measure reflects the Government’s resolve to empower exporters, encourage innovation, and shift decision-making authority to the private sector, in line with the Prime Minister’s economic vision.
Senator Aurangzeb pointed to encouraging improvements in key economic indicators. Between July and October: • Cement production grew by 16 percent, fertiliser by 9 percent, petroleum by 4 percent, automobiles by 31 percent, mobile phone manufacturing by 26 percent.
He said Large-Scale Manufacturing overall increased by 4.1 percent in the first quarter - a marked improvement compared to last year’s contraction.
On the external sector, the Minister said that exports have grown by 5 percent overall. IT services exports are up 20percent+ year-on-year, recording back-to-back historic monthly highs.
Remittances are expected to cross $41 billion, providing a stable cushion for the current account.
The $3.5 billion Reko Diq syndication - led by IFC - has achieved financial close and is poised to generate nearly $3 billion in annual exports He also noted improvements in the tariff regime, explaining that Pakistan is gradually phasing down longstanding protectionist measures to help domestic industries become internationally competitive over the next 4-5 years.
The Minister reiterated that structural reforms remain at the heart of the Government’s agenda, with progress underway in tax policy, SOE reform, debt management, pensions, digitalisation and energy sector improvements. He confirmed that the newly established Tax Policy Office has become operational under the Finance Division and will play a central role in developing next year’s budget.
On public finance, Senator Aurangzeb stated that Pakistan’s domestic debt stock has stabilised for the first time in nine years. He shared that Pakistan’s inaugural Panda Bond - supported by ADB and AIIB - will be issued before December or ahead of the Chinese New Year, helping diversify funding sources and reduce borrowing costs. He also stated that the 11th NFC Award process will commence next week, with all provinces participating.
He emphasised the need for constructive federal-provincial engagement on revenue, expenditure and governance reforms under the spirit of “Pakistan First.” Addressing questions on taxation and energy, the Minister underscored the Government’s focus on fairness, tax base expansion, reducing leakages, and lowering the cost of doing business.
Refunds have increased from Rs 200 billion to Rs 250 billion over the comparable five-month period, demonstrating responsiveness to the needs of industry. He also stressed that durable reforms in sectors such as sugar require complete deregulation and a transition away from government intervention to eliminate distortions.
Senator Aurangzeb highlighted strong global investor interest in Pakistan, with companies such as Aramco, Wafi, Gunvor, Turkish Petroleum, Barrick Gold, Citizen Metals, NOVA Minerals, BYD, Chery, NWTN Motors, Abu Dhabi Ports, and Google expanding or announcing operations in the country — clear evidence of confidence in Pakistan’s long-term economic potential. In his concluding remarks, the Minister stated that Pakistan has moved past the crisis of two years ago and is now firmly advancing toward a stable, export-led, investment-driven future.
He reaffirmed the Government’s commitment to continued transparency and regular engagement with the public and media.
He said remittances were also increasing as the government was encouraging the private sector. FM Aurangzeb said remittances were estimated to reach $41 billion in the current fiscal year. Finance Minister said tariff regime plan covers 4-5 years. He said Prime Minister Shehbaz Sharif has directed to abolish Export Development Surcharge.