Pakistan”s economic team on Monday announced significant macroeconomic gains, backed by international institutions, and detailed an ambitious plan to privatize Pakistan International Airlines (PIA) by the end of the year. Finance Minister Muhammad Aurangzeb, speaking at a news conference, asserted that ongoing structural reforms are stabilizing the economy and paving the way for sustainable growth.
According to official report today, Aurangzeb emphasized that this progress has been acknowledged by global financial institutions and rating agencies. He pointed to recent upgrades from three major credit rating agencies and a staff-level agreement with the International Monetary Fund (IMF) as manifestations of this external endorsement, confirming the country is on a correct path.
The Finance Minister also highlighted positive economic indicators, including a reduction in inflation, a lower policy rate, and stability in foreign exchange reserves.
Providing an update on the power division, Minister for Power Sardar Awais Ahmad Khan Leghari revealed that electricity prices have been slashed by ten rupees and fifty paisas per unit over the last 18 months. For industrial consumers, the reduction has been even more significant, at sixteen rupees per unit.
Leghari announced a major reform for the power sector, with the planned operationalization of the Competitive Trading Bilateral Contract Market (CTBCM) by January or February of the coming year. He described this initiative as a move to create an open electricity trading market, which would relieve the government of its role in purchasing power and ultimately lead to better prices for consumers.
The Power Minister also noted a reduction in the circular debt, stating that a comprehensive plan is in place to eliminate 1.2 trillion rupees of this debt over the next six years without imposing additional costs on the public.
Adviser on Privatization Muhammad Ali elaborated on the government”s privatization agenda, confirming that First Women Bank has already been privatized. He reiterated the target to complete the privatization of PIA by year-end, noting that several prominent Pakistani business groups have expressed interest in the national airline.
On the technology front, Minister for Information Technology Shaza Fatima Khawaja explained that the adoption of digital banking and payment systems is set to revolutionize tax collection. She added that the digitization of government departments is actively underway to broaden the tax base.
Khawaja provided specific examples of this digital push, including the printing of 450 million utility bills with QR codes for easy payment. She also reported that ten million full-mandated digital accounts have been established for women beneficiaries of the Benazir Income Support Programme, with eight million actively conducting transactions. Citing the success of the “City Islamabad App,” she revealed that residents paid one billion rupees in vehicle taxes through the application this year alone.
Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial reported a 1.49 percent increase in the tax-to-GDP ratio over a single year, an unprecedented rise he attributed to policy measures. He outlined a future target to elevate this ratio to eighteen percent within the next three to four years, with the federation contributing fifteen percent and the provinces three percent.
The FBR Chairman also disclosed that the number of tax filers has grown by eighteen percent this year compared to the previous one.