ISLAMABAD: Finance Minister Muhammad Aurangzeb on Thursday warned that urgent economic reforms are must to restore world’s trust in Pakistan, saying, “We have lost our credibility as a country.”
Aurangzeb briefed lawmakers on the country’s climate financing challenges and its negotiations with international lenders during a session of the Senate Climate Change Committee that was chaired by Senator Sherry Rehman.
He revealed that the Asian Development Bank (ADB) had committed $500 million, while Pakistan expects to secure $1 billion from the International Monetary Fund (IMF) next week.
The government is also working on issuing “Green Panda Bonds” to attract further investment.
Aurangzeb also announced a major shift in tax policy, stating that the finance ministry will now oversee tax policy, while the Federal Board of Revenue (FBR) will focus solely on tax collection.
The minister also stressed the need for structural reforms to achieve sustainable and inclusive economic growth.
Moreover, during the meeting, Senator Sherry Rehman emphasised that Pakistan must strengthen its financial strategy to gain international support, noting that no assistance will come without a well-defined plan.
Meanwhile, speaking at an event organised by the Pakistan Retail Business Council in Islamabad, he said reforms in taxation, energy, state-owned enterprises (SOEs), and public finance were already underway.
He expressed confidence that the country was moving in the right economic direction, with macroeconomic stability achieved.
On taxation, Aurangzeb highlighted efforts to modernise the system using technology, ensuring transparency and plugging revenue leakages.
He acknowledged that the salaried class bears a disproportionate tax burden, stressing that retail, wholesale, real estate, and agriculture must contribute fairly.
Discussing energy reforms, he said difficult but necessary measures were being implemented to create a competitive energy market.
Regarding SOE restructuring, the minister confirmed that rightsizing efforts would be completed by June, and that the privatisation process would move forward.
