Finance Minister Muhammad Aurangzeb has affirmed that Pakistan is ready to carry forward the journey of resilience, reform and recovery to unlock long-term, inclusive and export-oriented economic growth.
He was speaking during a virtual engagement with Moody’s Rating Agency at the Finance Division in Islamabad today (Tuesday).
The Finance Minister emphasized that under the direct oversight of the Prime Minister, the government is implementing measures to expand the tax base, plug leakages and enhance compliance. He said government is firmly committed to reaching a tax-to-GDP target of 13 to 13.5 percent in the next few years.
During the session, the Finance Minister apprised the Moody’s team of the significant strides Pakistan has made in stabilizing its economy and laying the foundations for sustainable and inclusive growth.
The Minister highlighted a series of structural reforms undertaken by the government to anchor long-term stability. These included prudent fiscal measures in the recently announced budget, tariff and trade liberalization geared towards export-led growth and concerted efforts to rationalize expenditure. The ongoing discussions with the United States on preferential tariff access were also noted as making encouraging headway.
The Finance Minister and his team presented compelling evidence of macroeconomic recovery, including a sharp reduction in inflation, a cut in the policy rate, stabilization of the exchange rate, a current account surplus, and a surge in foreign exchange reserves. Improvements in remittance inflows and export performance were also cited as signs of resilience and renewed investor confidence.
The meeting further outlined Pakistan’s re-engagement with global financial markets, including the successful arrangement of one billion dollars in commercial financing from the Middle Eastern region, plans for an inaugural Panda bond, and Pakistan’s intent to explore the Eurobond and other international debt markets as credit ratings improve.
Muhammad Aurangzeb expressed optimism that the improving macroeconomic indicators and reform momentum would be positively acknowledged by rating agencies, further strengthening Pakistan’s case to tap international markets and deepen its external sector stability.
