Aurangzeb holds virtual meetings with UAE banks
ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Monday underscored commitment to reforms in talks with United Arab Emirates (UAE) Banks and said that the current economic stability is backed by difficult but necessary reforms.
The Ministry of Finance held a series of virtual meetings Monday with three UAE banks, Sharjah Islamic Bank, Abu Dhabi Islamic Bank, and Ajman Bank regarding their support to Pakistan's development and fiscal objectives, said a press release issued here.
These meetings were chaired by the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and attended by senior officials of the Finance Division and other relevant stakeholders.
The Finance Minister thanked Standard Chartered Bank and Dubai Islamic Bank for their valuable role in organizing these interactions and facilitating engagement with potential partners.
The Minister also appreciated Asian Development Bank's collaboration and support to Ministry of Finance for supporting Pakistan's fiscal and development goals. In his remarks, he highlighted Pakistan's steady progress toward macroeconomic stability, stating that 'we have come a long way—this year we are on track to close with an year long current account surplus, a primary surplus, and forex reserves approaching USD 14 billion, providing three months of import cover.'
He added that inflation has eased to 0.3 percent and the policy rate has also come down significantly, showing a positive outlook for the economy.
The Minister emphasized that structural reforms in the country form the basis of this recovery and underscored that the government is firmly committed to long-term reforms, including the restructuring of State-Owned Enterprises, an active privatization program, and rightsizing of the federal government. 'We have broken away from the old boom and bust cycle.
The current stability is backed by difficult but necessary reforms—and we are staying the course,' he said.
On the revenue side, he shared that Pakistan is set to reach a tax-to-GDP ratio of 10.6 percent by June 2025, with a target of 11 percent in the next fiscal year. The government is prioritizing FBR reforms and end-to-end digitization to broaden the tax base and improve compliance.
He also noted that the ongoing progress is backed by the approval of disbursement of the second tranche under the IMF's Extended Fund Facility (EFF) and approval of USD 1.3 billion under the new Resilience and Sustainability Fund (RSF).
Pakistan has met all quantitative targets under the IMF program and has also achieved key structural benchmarks, including the introduction of agricultural income tax—a milestone measure in the country's fiscal history. The Minister also referenced the recent improvement in Pakistan's sovereign credit rating by Fitch as a reflection of market confidence.
Looking ahead, the Finance Minister emphasized Pakistan's shift towards a productivity- and export-led growth model. He pointed to robust growth in the IT sector, with exports reaching USD 3.4 billion in March, and momentum in the minerals and mining sector.
He mentioned that the Reko Diq project has stimulated interest in Pakistan's mining potential, and we aim to leverage copper reserves both for exports and energy transition. During the interactive sessions, senior executives of the three banks acknowledged the progress and shared their comments and views on Pakistan's economic plans.
The meeting concluded with mutual interest in continuing the dialogue and exploring potential avenues for collaboration. The Finance Minister reaffirmed Pakistan's openness to quality commercial partnerships that contribute to economic growth, development financing, and investor confidence.
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