Finance Minister Muhammad Aurangzeb stated in a press briefing that Pakistan aims to raise its tax-to-GDP ratio to 13-14% in the next four years. However, he emphasized that pensions continue to pose a significant burden, requiring substantial reforms to address the issue.
Speaking alongside Information Minister Attaullah Tarar and Law Minister Azam Nazir Tarar, Aurangzeb announced that the federal government intends to rein in pension expenses, suggesting a potential increase in the retirement age as a preliminary measure. Stressing the pivotal role of infrastructure development in economic growth, he advocated for immediate tax reforms and highlighted the imperative for both tax and pension system overhauls. Additionally, he outlined strategies to invigorate the economy through collaboration with the private sector.
The Finance Minister revealed that the International Monetary Fund (IMF) will dispatch a team to Pakistan this month to discuss a new loan program, aiming to foster international collaboration and positively influence the country’s financial policies and future prospects.
Regarding investment discussions, Aurangzeb expressed satisfaction with the recent Saudi visit’s outcomes, noting progress towards economic objectives. He acknowledged a substantial enhancement in foreign exchange reserves following the IMF’s deposit of $1.1 billion with the State Bank of Pakistan.
Highlighting the importance of fiscal discipline, the Minister emphasized the imperative of reducing non-development expenditures. He committed to partnering with the private sector to propel economic growth and stressed the necessity of curbing pension costs for sustained financial stability.
Aurangzeb also hinted at potential collaboration with China through capital market initiatives.
