Government of Pakistan

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a review meeting with representatives from Joint Venture Investment Companies, including Pak-Brunei Investment Company Limited (PBICL) and Saudi-Pak Industrial and Agricultural Investment Company (SPI&AIC). Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with the leadership of Pak-Kuwait Investment Company (PKIC) to discuss the strategic initiatives and future directions of the joint venture in Pakistan. The meeting concluded with both sides expressing their resolve to continue working closely to address Pakistan’s development challenges and to implement sustainable solutions that benefit all segments of society.

The Finance Minister emphasized the need for investment in technology and fostering a cultural shift towards digital governance. He underscored the Government’s commitment to improve tax collection through the Federal Board of Revenue’s (FBR) ongoing efforts in digitization. The Minister also cited that the data from PRAL (Pakistan Revenue Automation Limited) and REMIT can be utilized in digitizing FBR’s tax system. The discussions covered the possibility of achieving quick wins by leveraging this data and implementing daily reporting through dashboards to monitor progress in real-time. In response, the Finance Minister, Senator Mr. Muhammad Aurangzeb emphasized the numerous opportunities available in GB, noting its potential as a prime location for tourism.

During the meeting, the PMIC team presented a detailed overview of the microfinance landscape, highlighting key challenges and opportunities. It was noted that Pakistan significantly lags behind regional counterparts, such as Bangladesh, India, and the Philippines, in terms of financial inclusion, with a potential microcredit market of 41 million, of which only 7.4 million clients are currently served. The meeting was also attended by Governor SBP, CEO State Life Insurance Corporation (SLIC), MD Bait-ul-Mal, Secretary BISP, Secretary PA&SS, and Secretary Finance. Pakistan currently has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees. The Finance Minister reaffirmed his commitment to regulating and encouraging this industry by adopting appropriate frameworks, laws, and incentives to ensure transparency and facilitate digital business growth.

Secretary Commerce, Chairman FBR, Secretary to the Governing Council/Member Customs FBR, CEO PSW, experts from PSW GC and senior officers from other ministries attended the meeting. The meeting concluded on a positive note with mutual commitment to fostering growth in the agriculture sector and maximizing export potential. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb was called on by the representatives of Pakistan Mobile Phone Manufacturers Association (PMPMA) at the Finance Division today. The representatives from Fitch Ratings appreciated the ambitious targets and fiscal measures adopted by the Government of Pakistan and acknowledged the improvement in economic indicators.

• The Committee also approved a proposal of the Ministry of Maritime Affairs to declare the Pakistan National Shipping Corporation (PNSC) as a Strategic SOE under Para-9(a) of Chapter-3 of the SOEs Ownership and Management Policy, 2023.
• However, those issues were now being effectively addressed, and the country was on the right trajectory towards microeconomic stability and sustainable growth.
• Mr. Saqib’s appointment marks a significant step forward in Pakistan’s commitment to embracing the transformative potential of digital currencies, ensuring financial security, mitigating risks, and effectively assessing the impact of cryptocurrencies on Pakistan’s economy.
• He reiterated the World Bank’s commitment to assisting Pakistan in addressing economic challenges and achieving its developmental objectives.
• Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with the Deputy Prime Minister of the Russian Federation, Mr. Alexei Overchuk, on the sidelines of the Boao Forum for Asia (BFA) Conference today.

The Committee then reviewed a summary from the Ministry of Overseas Pakistanis and Human Resource Development regarding the reconstitution of the Board of Governors of the Overseas Pakistanis’ Foundation (OPF). The Committee also reviewed the summary of the Ministry of Railways regarding the reconstitution of Boards of Directors (BoDs) of four Railway SOEs. A summary from the Ministry of National Food Security and Research was considered, concerning the appointment of independent directors for two vacant positions on the Board of the Livestock and Dairy Development Board (LDDB). The Minister extended a formal welcome to Mr. Mahir Binici on his assignment in Pakistan and assured him full support for carrying out his official responsibilities and a smooth day-to-day consultation with the government of Pakistan.

Speaking on the occasion, Minister for Finance and Revenue Senator Muhammad Aurangzeb appreciated the work done by PBA and SBP for coming site up with substantial initiatives and taking measures for implementing the more tangible initiatives. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a special meeting of the Economic Coordination Committee (ECC) of the Cabinet held at Finance Division, today. The IMF program is proceeding smoothly, with no disruptions, as the Government of Pakistan remains fully committed to meeting all the conditionalities and ensuring the successful completion of the 37-month program in close coordination with the IMF staff. The Committee concluded the meeting by reviewing the implementation of previous decisions made by the CCoSOEs to ensure compliance. The Ministry of National Food Security and Research also submitted a summary for the approval of the Board of Directors of the Pakistan Cotton Standards Institute (PCSI). A summary from the Ministry of National Food Security and Research was presented regarding the appointment of independent directors on the Board of Directors of the Fisheries Development Board (FDB).

This ensures that the rights and obligations of these consumers, including agreed-upon rates, will continue as per the existing terms. As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs 10 per unit. Furthermore, the committee approved the proposal, subject to the ratification of Cabinet, to allow the National Electric Power Regulatory Authority (NEPRA) to revise this buyback rate periodically, ensuring that the framework remains flexible and aligned with evolving market conditions. Additionally, the Minister acknowledged the significance of the Pakistan-Russia Freight Pilot Train Project, scheduled for launch on March 31, 2025, under the North-South Transport Corridor via Iran. Both sides discussed measures to ensure smooth operations, including customs facilitation and regulatory alignment. The proposal of Ministry of Industries & Production for the export of 0.15 million MT of surplus sugar was approved by ECC with the condition that in the event of a rise in retail price of sugar, the permission to export would be revoked.

The delegation briefed the Minister on the issues and challenges faced by the business community, highlighting areas that require policy intervention to foster a more favorable business environment. They also highlighted opportunities for growth in sectors such as technology, agriculture, and consumer goods, underlining the contributions of ABC member companies to Pakistan’s economic development. The Finance Minister welcomed the delegation and briefed them about the country’s recent macroeconomic progress, highlighting significant achievements in overcoming longstanding challenges. “Pakistan has historically struggled with twin deficits; however, due to improved export performance, the economy is now operating with a surplus in both fiscal and current accounts.

During the meeting, the Finance Minister presented a comprehensive overview of the Pakistan economy with focus on the stabilisation and growth trajectory achieved over the last one and a half year that had brought back the interest of investors and lenders into Pakistan. The Finance Minister also commended the Pakistan Army and other security forces for their unwavering commitment to safeguarding the nation’s sovereignty and ensuring peace within the region. He emphasized that the sacrifices of martyrs are a reminder of the enduring strength and resilience of Pakistan’s military and the spirit of its people. Mr. Javed Kureishi, Member Board of Directors KE, Mr. Mubasher H. Sheikh, Member Board of Directors KE, Mr. Moonis Alvi, CEO KE, Mr. Imran Qureshi, Chief Regulatory Affairs KE, M. Aamir Ghaziani, CFO KE and senior officials of the Finance Division also attended the meeting.

A meeting of the Cabinet Committee on Rightsizing of the Federal Government was held today, chaired virtually by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, from Davos, Switzerland. The Economic Coordination Committee (ECC) of the Cabinet met today to discuss a summary submitted by Petroleum Division for an upward revision of the indigenous gas tariff for industry (captive power) as well as non-protected domestic slabs. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held today an important meeting at the Finance Division with Mr. Mohammed Yahya, the United Nations Resident Coordinator, who was accompanied by Mr. Abdullah Fadil, UNICEF Representative. The Minister also welcomed the idea of creating a proactive and unified business platform for European companies, noting his recent positive engagement with a group of French and Dutch companies operating in Pakistan.

The Cabinet Committee approved the proposal of Ministry of Industries & Production for import of 100,000 MT Urea. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, had a meeting today with a delegation of Meezan Bank, led by the Chairman of the Board of Directors, Mr. Riyadh S.A.A Edrees. Governor of the State Bank of Pakistan (SBP), and senior officials from the Finance Ministry were also present in the meeting. Senator Muhammad Aurangzeb recalled his recent visit to China and expressed that he had extremely useful discussions with the Minister for Finance & other officials on proposals for enhancing economic cooperation between the two countries. Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Charge D’affaires Mr. Shi Yuanqiang and other officials of the Embassy of People’s Republic of China on Thursday, 8th August, 2024.

Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb was called on by the Chairman Nestle Pakistan Syed Yawar Ali and Ex-President Farmers Association of Pakistan Mr. Afaq Ahmed Tiwana in Finance Division today. Minister of State for Finance and Revenue Mr. Ali Pervaiz Malik and Member-IR Policy FBR also joined the meeting. The Secretary to the Governing Council updated the Finance Minister on the implementation status of decisions taken in the last meeting.

“While we are doing a commendable job in specific verticals, as a country, we must take a more holistic approach and scale up our efforts horizontally to ensure broader impact,” he added. The meeting concluded with a shared understanding that a well-regulated and growing mutual fund industry would not only contribute to economic stability but also offer secure and profitable investment opportunities for the public, promoting financial security and sustainable development. During the meeting, the delegation presented a comprehensive overview of Pakistan’s mutual fund industry and its role in promoting savings, investments, and capital market development. They highlighted that mutual funds play a critical role in channeling savings into productive investments, supporting economic growth, and expanding financial inclusion. The delegation also pointed out that Pakistan’s gross savings rate, currently at 13% of GDP, remains significantly lower than regional peers such as India, which stands at 30%. He assured that the government is committed to facilitating investments, promoting ease of doing business, and supporting sustainable growth through structural reforms.

Additionally, the Minister outlined ongoing initiatives, including end-to-end digitization in the Federal Board of Revenue (FBR) to broaden the tax base, reforms in the energy sector, restructuring of state-owned enterprises (SOEs), and focus on export-led growth. He highlighted recent improvements, including increased foreign exchange reserves, decreased inflation, and stable currency. The Minister attributed these positive indicators to the successful completion of the nine-month stand-by arrangement (SBA) with the IMF and mentioned that a staff-level agreement (SLA) has been reached to ensure continued economic stability. The Federal Minister also spoke about ongoing reforms in the energy sector, state-owned enterprises (SOEs), and taxation, emphasizing the government’s initiative to incorporate undertaxed and untaxed entities into the tax net.