IT, Mineral sectors to be game changers for Pakistan's economy: Finance Minister

Express Tribune

12-04-2025

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Federal Finance Minister Senator Muhammad Aurangzeb on Saturday said that Pakistan's Information Technology (IT) and mineral sectors hold transformative potential for the national economy.
He emphasized that these sectors would be game changers in the coming years, adding that under the leadership of Prime Minister Shahbaz Sharif, the country's economic direction has become clearer, with positive results expected soon.
Addressing the business community at the Lahore Chamber of Commerce and Industry (LCCI), the finance minister highlighted the government's commitment to listening to and resolving the challenges of the private sector.
'We are here to serve the people. I am visiting chambers to listen, understand, and resolve problems of the business community. The legitimate demands of the chambers will be accepted,' he said.
Aurangzeb cited Singapore's success with nickel exports—reaching USD 22 billion—and drew parallels with Pakistan's copper reserves, underscoring the vast potential of the mineral sector. He also noted rising global interest in Pakistan's IT and minerals and reiterated the government's resolve to eliminate barriers for local and foreign investors.
On economic stability, the finance minister pointed to improved macroeconomic indicators, stating:
'Lowering inflation is essential for economic stability. The interest rate was at 22 percent, today it is at 12 percent.'
He stressed the importance of reducing financing costs, power tariffs, and implementing improved taxation policies to spur industrial growth.
Aurangzeb also said that restrictions on profit repatriation for foreign investors had been lifted, restoring investor confidence.
'We are ensuring that the benefits of reduced inflation directly reach the common man. Middlemen will not be allowed to exploit the system,' he vowed.
Addressing taxation challenges, the minister acknowledged the burden on the salaried class:
'Income tax is deducted at source, and we intend to offer relief to the salaried segment.'
He revealed that 24 national entities had been earmarked for privatization, and called for minimizing human interaction in the system to reduce inefficiencies.
'If we can increase the tax-to-GDP ratio to 13 percent, we can offer broader relief to various sectors,' he said, noting that lowering edible prices had limited opportunities for middlemen to exploit the system.
During the Q&A session, Aurangzeb confirmed that visa-related issues were regularly discussed in meetings during the Prime Minister's foreign visits and were being addressed on a priority basis.
He reaffirmed the government's commitment to engaging with the private sector:
'The private sector plays a key role in running any country. A committee has been formed, as per the Prime Minister's direction, which is working on GSP Plus.'
LCCI President Mian Abuzar Shad lauded the government's steps toward economic revival.
'We appreciate the reduction in the policy rate from 22 percent in June 2023 to 12 percent now. This will ease access to capital for businesses,' he said, adding that inflation had dropped from 20.7 percent in March 2024 to just 0.7 percent in March 2025.
He also praised the launch of the 'Uraan Pakistan' programme, aimed at boosting exports to USD 60 billion, attracting USD 10 billion in annual private investment, creating one million jobs per year, and addressing climate and energy goals. He highlighted the Special Investment Facilitation Council's (SIFC) role in enhancing investor confidence.
LCCI Senior Vice President Engineer Khalid Usman recommended increasing the turnover threshold for withholding agents from Rs. 100 million to Rs. 250 million. He expressed concern over the FBR's freezing of bank accounts in light of pending court cases on Capital Value Tax (CVT) under the amnesty scheme, calling the practice unjustified.
Vice President Shahid Nazir Chaudhry called for long-term economic planning, suggesting a consistent 10-year policy roadmap. He proposed tax deductions on R&D expenditures by private companies to promote innovation and technological development.
SAARC Chamber's Vice President Mian Anjum Nisar echoed the need for innovation-driven economic growth.
The session was attended by representatives of the Federal Board of Revenue (FBR), business leaders, and members of various chambers.