Finance Minister Mohammad Aurangzeb addressing in the National Assembly highlighted Pakistan's unprecedented achievements in the economic sphere, heralding the stock market's record-breaking performance as a testament to the nation's fiscal resilience.
Amid talks with international financial institutions including the IMF and World Bank, Aurangzeb emphasized the global community's vested interest in Pakistan's economic success, citing engagements with key allies such as Kingdom of Saudi Arabia, the U.A.E., and Republic of China.
Aurangzeb underscored the pivotal role of agriculture and information technology (IT) sectors in driving economic growth, revealing a robust 5% increase in agricultural GDP and a projected $3.3 billion in software exports this year alone.
Addressing in the lower house of the Parliament, Aurangzeb asserted the need for domestic solutions to bolster these sectors, affirming Pakistan's independence from external aid in the IT realm while acknowledging the necessity for structural reforms and tax compliance.
Elaborating on the imperative of taxation, Aurangzeb stressed the nation's obligation to contribute to its economic prosperity, signaling a departure from leniency towards tax evasion.
Urgent tax and energy sector reforms
With a current account deficit miraculously transformed into a surplus and foreign exchange reserves soaring to $8 billion, Aurangzeb emphasized the urgent need for tax and energy sector reforms to facilitate export growth and mitigate institutional losses.
IMF dependency, Aurangzeb advocated for self-reliance and sovereign decision-making, asserting that stability, not growth, is the outcome of IMF programs.
He urged a concerted effort towards self-sufficiency, warning that a 9% tax rate is unsustainable and necessitates strategic recalibration.
Aurangzeb emphasized that economic revitalization hinges on proactive measures and collective responsibility, signaling a ‘new era of fiscal pragmatism’ in Pakistan.
“Domestic economy is moving towards getting rid of usury. The decision to abolish interest has been reached, which is being implemented,” Muhammad Aurangzeb told the parliamentarian.
He said foreign exchange reserves reached $8 billion depending upon the interest rate. “The installment of $1.19 billion will also come from the IMF this week,” he said.
“Foreign exchange reserves will be between $9 to $10 billion by the end of June,” the finance minister said.
He disclosed that friendly countries want to see Pakistan succeed economically.
Agriculture GDP is showing 5% growth
The finance minister said agriculture GDP is showing 5% growth, excellent crops are being produced. While no wndustrial policy will succeed without improving energy equity, he stressed.
