Latest news with #Aurangzeb
Business Recorder
2 days ago
- Business
- Business Recorder
A ‘bold' budget for next FY
EDITORIAL: Finance Minister Muhammad Aurangzeb while addressing an event organised by Karandaz Pakistan and Pakistan Banks Association claimed that macroeconomic stability has been achieved. However, this stability, as per the October 2024 documents relating to the approval of the ongoing Extended Fund Facility programme are, is disturbing as the country's vulnerabilities continue to persist. The Fund document notes, 'A large part of the economy is uncompetitive, propped up by the extensive use of protection, subsidies, and tax concessions, which have undermined the tax base. Protectionism, including from new entrants in domestic markets has undermined competition, leading to inefficiency and low productivity. A difficult business environment and weak governance have hindered investments, which remain significantly lower than peer countries, further undermining competitiveness. Economic volatility has only increased over time, with a tight correlation between Pakistan's boom-bust economic outcomes and its macroeconomic policies. The repeated attempts to boost economic activity through fiscal and monetary stimulus have not translated into durable growth, as domestic demand increased beyond Pakistan's sustainable capacity, resulting in inflation and depletion of reserves, given a strong political preference for stable exchange rates. Each subsequent bust has further harmed Pakistan's policy making credibility and investment sentiment.' Aurangzeb further stated that the government is preparing to introduce 'bold measures' in the budget with a focus on strategic direction. One must welcome this orientation that was lacking in previous budgets as the focus was on balancing the books through raising the target revenue to an unrealistic level that was rarely if ever met by the end of the year, and adjusting the shortfall through slashing the Public Sector Development Programme (PSDP). In addition, domestic and external borrowing was increasingly relied on to meet our external financing needs (read repayment of interest and principal as and when due on foreign debt) as well as the budget deficit targets agreed with the IMF; and in this context it is relevant to note that in the current fiscal year the budgeted external borrowing has not yet materialised, partly due to global factors but partly due to Pakistan's high-risk rating that continues in spite of claims of having achieved economic stability. Next year's foreign borrowing requirements are projected at 19.3 billion dollars, which no doubt would limit the government's capacity to introduce some 'bold measures' unless of course the government is able to slash current expenditure at best or keep it at 2024-25 levels at worst. The minister proceeded to aver that rather than making the math work the government intends to make the budget more strategic. This too must be appreciated though the recent statement by the Finance Ministry delivered during the meeting of the sub-committee of the National Assembly on Commerce should be a source of concern; notably, the acknowledgement that there was a disagreement with the Fund over some key budgetary figures including subsidy allocation. There is overwhelming evidence that Pakistan has almost no leverage with the Fund at present that would allow the authorities an element of phasing out the harsh up-front conditions without proactively exercising leverage through either pension reforms (with the start of employee contributions) and resisting a pay raise for the 7 percent of the workforce which receives a salary at the taxpayers' expense, a policy that no previous administration has been able to implement, and to strictly adhere to the math behind the budget document by adhering to the expenditure and revenue sources identified in the budget. The minister also claimed that Pakistan has achieved macroeconomic stability and emphasised the need for avoiding past mistakes that accounted for the boom-bust syndrome. There is no doubt that in the past the 'sugar high' he referred to was a factor that led the country to repeat the same mistakes over and over again: pumping liquidity into the market (through mainly government expenditure on industrial incentives and subsidies), which led to sustaining an industrial base (that envisages exporting the surplus rather than producing for export) that requires massive imports which, in turn, led to periodic balance of payment issues requiring IMF programme loans. The challenges facing the country's economy are immense and one can only hope that the finance minister stays the course, with full support from all stakeholders, otherwise the country would be pushed deeper into the mire with the prospect of success even more difficult. Copyright Business Recorder, 2025
Express Tribune
4 days ago
- Business
- Express Tribune
Cashless economy a necessity for fiscal resilience: FinMin
Federal Minister for Finance Muhammad Aurangzeb on Tuesday chaired a high-level meeting at the Finance Division to discuss a host of measures for advancing Pakistan's transition to a digital and less cash-dependent economy. The meeting brought together senior representatives from Pakistan's financial sector, including commercial banks, development finance institutions, regulators and investment experts, who form the core of a committee set up by the minister for crafting recommendations to support Pakistan's transition towards the digital economy. Participants engaged in comprehensive discussions on a series of key proposals aimed at fostering greater adoption of digital payments. They reached consensus on a range of measures intended to expand access to digital financial services, encourage the use of digital transactions and reduce reliance on cash in everyday economic activity. Among the key areas of the agreement was the need to ensure that digital payment options were widely available and accessible across various sectors, including retail, services and public sector transactions. The participants supported steps that would encourage broad-based interoperability by particularly leveraging the Raast instant payment system, which would lead to improved consumer choice in using digital payment platforms. It was agreed that creating a more level playing field between cash and digital transactions was essential and incentive structures should be rebalanced to make digital payments further attractive and cost-effective for both consumers and businesses. The importance of improving cost structures related to digital transaction infrastructure, including merchant acquisition and service provision, was highlighted as a priority to enable wider outreach, especially for small merchants and underserved communities. The finance minister, while welcoming the committee's recommendations, emphasised that digitalisation was central to Pakistan's economic modernisation agenda. He noted that increasing the footprint of digital payments would significantly enhance financial transparency, promote inclusion and improve efficiency in both public and private sector operations. Aurangzeb stressed that moving towards a cashless economy was not simply a policy aspiration, but a practical necessity for long-term fiscal resilience, competitiveness and inclusive growth. "Digitalisation is the foundation of a modern financial system. We must move with urgency and coordination to create a payment environment that is inclusive, interoperable and focused on the ease of use for every Pakistani citizen," he remarked. The minister underscored the importance of leveraging technology to simplify financial access for individuals and businesses while ensuring policy alignment across different stakeholders. The meeting concluded with a directive to the committee to prepare a detailed and time-bound roadmap for implementation of the initiatives. On Tuesday, Finance Minister Muhammad Aurangzeb also met with a delegation of the Pakistan Association of Large Steel Producers, led by Patron-in-Chief Abbas Akbar Ali. The delegation highlighted the critical challenges facing the steel industry, including high energy costs, regulatory inconsistency and the need for a stable policy environment to ensure long-term investment and growth. They also outlined the impact of tax policies on formal businesses and sought the government's support for creating a level playing field. The finance minister acknowledged the industry's concerns and reiterated the government's commitment to supporting the productive sectors of the economy. He noted that the steel sector was playing a pivotal role in infrastructure development and job creation and assured the delegation that their input would be considered in the ongoing budgetary meetings and policy discussions. He emphasised that Pakistan's economic revival required collective responsibility. "Every sector has to play its role in stabilising and growing the economy. We cannot allow the burden to fall solely on the formal sector and the salaried class," he stated. Aurangzeb elaborated that the government was pursuing a broad-based strategy to expand the tax base, reduce reliance on over-taxed segments and bring the undocumented economy into the fold. In this regard, the prime minister is leading regular meetings aimed at strengthening economic governance and enforcing equity across sectors. The minister encouraged continued dialogue between the industry and the government to align reforms with the practical ground realities. He reaffirmed the commitment to ensuring that economic policy was transparent, inclusive and growth-oriented.
India.com
4 days ago
- Politics
- India.com
Ram Setu Vs Aurangzebs Tomb: National Heritage Debate Reaches Supreme Court
A national debate has reignited over the recognition of India's ancient and culturally significant sites, with a critical question now reaching the doors of the Supreme Court: Why is Aurangzeb's tomb a protected national monument, but not the Ram Setu, a symbol of Hindu faith and ancient heritage? In today's DNA, Rahul Sinha, Managing Editor of Zee News, reported that, The Archaeological Survey of India (ASI) and the Government of India are now under public and judicial scrutiny, as former Rajya Sabha MP Dr. Subramanian Swamy has filed a Public Interest Litigation (PIL) seeking that Ram Setu (Adam's Bridge) be officially declared a national monument. #RamSetu | राम धरोहर, रामसेतु राष्ट्रीय धरोहर... इतने प्रमाण, इतने निशान, फिर भी घमासान! रामसेतु को राष्ट्रीय स्मारक कब बनाएंगे?#DNAWithRahulSinha #DNA @RahulSinhaTV — Zee News (@ZeeNews) May 27, 2025 Ram Setu: A Symbol Of Faith and History Located between India and Sri Lanka, Ram Setu holds deep religious significance in Hindu mythology. Referenced in the Ramcharitmanas, it is believed to have been constructed by Lord Rama's army to reach Lanka and rescue Sita. Many historical references — including ancient Persian and Arab texts — mention the existence of a bridge-like structure in the region. Despite this, Ram Setu has not received national monument status under the Ancient Monuments and Archaeological Sites and Remains Act, 1958. The Act stipulates that any site over 100 years old with historical, cultural, or architectural importance can be declared a monument of national significance. Dr. Swamy's petition argues that Ram Setu meets all legal criteria and thus should be protected by the state. Aurangzeb's Tomb: A Protected Monument Since 1951 The controversy intensifies when compared to the status of Mughal ruler Aurangzeb's tomb in Maharashtra, which was declared a protected monument on December 11, 1951, under the same 1958 Act. This decision was made during the tenure of India's first Prime Minister, Jawaharlal Nehru. Critics now ask why a tyrant's tomb has legal protection while Ram Setu does not, despite its deep spiritual and cultural roots. Government's Stance And Legal History The demand for Ram Setu's protection is not new. In fact, it has been central to political and legal debates since the 1950s. In 2007, during the UPA regime, the government submitted an affidavit in the Supreme Court arguing that Ram Setu had no historical or scientific evidence supporting its existence as a man-made structure. Senior advocate Fali S. Nariman even stated that Lord Rama himself destroyed the bridge upon his return from Lanka. However, in 2021, the Central Government authorized a study by the ASI to determine whether Ram Setu is a natural formation or human-made. The report has yet to be made public. In 2022, Union Minister Jitendra Singh acknowledged in Parliament that while conclusive proof remains elusive, there is historical and mythological evidence in favor of Ram Setu's existence. Historical Mentions • In 850 CE, Persian geographer Ibn Khordadbeh referred to Ram Setu in his book Book of Roads and Kingdoms. • In 1030 CE, Al-Biruni mentioned the bridge in Kitab-ul-Hind, calling it 'Setu Bandh'. • A Dutch cartographer in 1747 marked the area as 'Raman Kweel' in his maps. The Political And Cultural Undercurrent The issue strikes at the heart of India's ongoing cultural identity debate. Supporters argue that Ram Setu deserves preservation not just as a religious symbol but as a testament to India's ancient heritage, one that is even visible via satellite imagery. Critics of the current state policy question why a structure linked to destruction (Aurangzeb's tomb) receives protection, while one associated with construction and faith remains neglected. As the Supreme Court hears the PIL, public discourse continues to intensify. Social and political commentators assert that the decision will be a litmus test of how India balances its historical truths with modern secular governance. The Larger Question Why is a symbol of tyranny protected, but a sacred bridge of faith and legend still awaiting recognition? The nation, and the highest court, must now decide.
Business Recorder
5 days ago
- Business
- Business Recorder
Aurangzeb says budget to exhibit ‘bold initiatives'
ISLAMABAD: The federal government is preparing to introduce bold measures in the upcoming budget with a focus on strategic direction, Finance Minister Muhammad Aurangzeb said Monday. While addressing an event organised by Karandaaz Pakistan and Pakistan Banks Association (PBA) here, the finance minister said that budget is not just about revenue and expenditure, it has to provide the strategic direction of where the economy is, and where it is heading. He added that rather than making the math work, the government intends to make the budget document more strategic. Govt to introduce 'bold measures' in the upcoming budget, says Aurangzeb The federal budget for FY2025-26 will be presented on June 10, 2025. Meanwhile, the Pakistan Economic Survey 2024-25 will be released on June 9, 2025. Talking about the recent escalation of tensions between Pakistan and India, Aurangzeb said that these are very tense moments. The entire nation has rightly celebrated the way our armed forces and political leadership have stood up against the aggression. Aurangzeb shared that efforts were made to derail Pakistan's engagement with the International Monetary Fund (IMF). He said, there was no stone left unturned in terms of ensuring that the meeting with the IMF does not happen. If the meeting does happen, then these items are not on the agenda, whether it is the second tranche under the Extended Fund Facility (EFF) and the $1.3 billion under the Resilience and Sustainability Facility (RSF). However, we are beyond that, and our case was discussed and decided on merit. He said the unity shown by the nation against recent aggression is the same unity needed on the economic front. On macroeconomic stability, Aurangzeb emphasised the need to avoid repeating past mistakes. He said that we have achieved macroeconomic stability in yesteryears and in the previous decades as well, but we have squandered the opportunity. Because it is easy to get into a sugar rush, i.e. pump liquidity into the market, go for consumption-led growth, which triggers balance of payment and FX issues. He said that to break away from the boom and bust cycle, Pakistan needs to stay the course in terms of structural reforms. Aurangzeb shared that the government remains committed to simplifying the tax return filing process for the salaried class. '70-80 per cent of the salaried class do not necessarily hold equity or income portfolios, why should they fill 140-150 measures? 'We are trying to bring it down to nine items, five on the wealth and four on the income tax side.' He said the government wants to implement the simplified process by the end of September. On the SoE reforms, the finance minister admitted that this is one area where we did not do well last year. He said that the government remains committed to accelerating reforms in this sector. He confirmed the PIA transaction has been relaunched and expressed optimism about its completion. On debt servicing, Aurangzeb said in the ongoing fiscal the government debt servicing cost has decreased by Rs1 trillion. 'Next year, we are going to restructure/reorganize our debt management office along the modern lines,' he said. The finance minister was of the view that the ongoing structural reforms would put Pakistan's economy 'on a path of sustainable growth'. Aurangzeb expressed optimism about Pakistan's long-term economic trajectory. Our economy has crossed the $400 billion level. This shows we are moving in the right direction but to become a $3 trillion economy by 2047, we need to mitigate two existential issues, i.e. population and climate. He said four out of the six points under the 10-year Country Partnership Framework inked with the World Bank deal with climate and population. Speaking about the importance of the initiative, Syed Salim Raza, chairperson Karandaaz, said: 'Karandaaz is proud to support Pakistan's financial sector as it transitions toward purpose-driven finance. This training is part of our broader commitment to building the institutional capacity required to align with global investment standards and deliver measurable development outcomes. By strengthening local capabilities in impact measurement and sustainable finance, we are laying the foundation for a more inclusive and resilient financial system.' Addressing the participants, Director Development BHC Islamabad Jo Moir stated, 'This training underscores BHC's long-term engagement with Pakistan's financial sector. A decade ago, we supported the creation of Karandaaz as a special purpose impact finance vehicle. Today, it serves as a lighthouse for the sector, demonstrating scalable models for inclusive and sustainable finance.' The workshop is being led by Alex MacGillivray, executive director at the JIM Foundation and a globally recognised expert in impact measurement. With a career spanning development finance institutions and advisory work international impact investors, MacGillivray has delivered a highly practical curriculum that blended theory with real-world applications. 'The idea was to move beyond traditional credit models and introduce a more purposeful financing approach, one that drives measurable outcomes alongside financial returns,' said MacGillivray. 'With the right institutional momentum and leadership, Pakistan can play a key role in the global impact investing movement.' The training is covering a comprehensive range of topics, including strategic intent, impact governance, portfolio-level impact design, impact at exit and independent validation. Participants are engaging in interactive case studies, peer learning sessions, and scenario-based exercises aimed at translating concepts into actionable strategies. Articulating the sector's commitment to sustainable finance, Muneer Kamal, CEO and Secretary General PBA, said, 'Pakistan's banking sector must lead from the front as we transition towards a more sustainable and impact-driven financial ecosystem. This partnership with MoF and Karandaaz reflects PBA's commitment to strengthening sectoral readiness and aligning capital with long-term national priorities.' This training reinforces the commitment by MoF, Karandaaz and PBA's ongoing efforts to strengthen institutional capabilities in Pakistan's financial sector and support the country's transition toward sustainable, impact-oriented finance. As global standards for responsible investing continue to evolve, Karandaaz remains committed to equipping local actors with the tools and knowledge needed to access and manage development capital effectively. Copyright Business Recorder, 2025
Express Tribune
5 days ago
- Business
- Express Tribune
Servicemen, civilians to get equal pay raise
Finance Minister Muhammad Aurangzeb said on Monday that there was no proposal in the budget to increase salaries of the armed forces more than the civilian government employees and assured that the nation's defence needs would be fully met. In a media interaction after attending a seminar, the finance minister also said that India did not leave any stone unturned to derail Pakistan's $7 billion package but it could not succeed. "There is so far no such proposal" for increasing the defence salaries more than that of the civilian employees, the finance minister said, responding to a question. The statement clears the air after rumours swirled suggesting that the government was considering significant increase in the salaries of the armed forces. The government is considering a proposal to increase salaries in the range of 6% to 10% due to low single digit inflation rate. While responding to another question, Aurangzeb said that whatever support the government could provide for meeting the defence needs would be fully provided. "This is about meeting the needs of the country, not just meeting the needs of the armed forces of Pakistan," he added. The finance minister also talked about malicious Indian designs to choke Pakistan's external financing. "There is immense support by the IMF despite the kind of efforts [India made] to derail the IMF programme," he said and added that had there been shortcomings in the implementation of the programme, there would have been some problems. Pakistan's case was discussed and approved on merit, because it met all the quantitative and structural benchmarks, he said. "These are very tense moments. The entire nation has rightly celebrated the way our armed forces and political leadership have stood up against aggression," he continued. "There was no stone left unturned in terms of ensuring that the meeting with the IMF does not happen and if the meeting does happen, then these items are not on the agenda, whether it's the second tranche under the Extended Fund Facility or the $1.3 billion under the Resilience and Sustainability Facility (RSF)," the minister said. "However, we are beyond that, and our case was discussed and decided on merit." Addressing an event, organized by the Karandaaz Pakistan and the Pakistan Banks Association (PBA) in Islamabad, Aurangzeb said that the federal government was preparing to introduce "bold measures" in the upcoming budget with a focus on strategic direction. "We are going to bring some bold measures during the budget for FY 2025-26," he said. He said that rather than making the math work, the government intended to make the budget document more strategic. The federal budget for FY 2025-26 will be presented on June 10, 2025 and the Economic Survey will be launched a day earlier. To yet another question about the delay in concluding IMF talks, the finance minister said that the IMF talks would continue next week virtually, but the main discussions had already taken place. He said that the government had achieved macroeconomic stability in the past too but "we have squandered" the opportunity. "Because it is easy to get into a sugar rush, ie pump liquidity into the market, go for consumption-led growth," which triggered balance of payment and FX issues, he said. To break away from the boom and bust cycle, Aurangzeb said, Pakistan needed to stay the course in terms of structural reforms. He stressed that the government remained committed to simplifying tax return filing process for the salaried class. He added that 70 to 80% of the salaried class did not necessarily hold equity or income portfolios and they should not be required to fill 150 columns. "We are trying to bring it down to nine items, five on the wealth and four on the income tax side." The minister added that the government wanted to implement a simplified process by the end of September. The finance minister admitted that the government could not perform well on the state-owned enterprises reform in the last year but hoped that the agenda would be expedited in the new fiscal year. He said that the PIA transaction had been launched again and expressed optimism about its completion. On debt servicing, Aurangzeb said that in the ongoing fiscal the government debt servicing cost had decreased by Rs1 trillion but stated that it was not a success, as the reduction was because of reduction in the interest rates. "Next year, we are going to restructure and reorganise the debt management office along modern lines," he said. Aurangzeb termed the country's economy crossing the $400 billion mark as a matter of satisfaction. "Our economy has crossed the $400 billion level. This shows we're moving in the right direction", he added. But he argued that to become a $3 trillion economy by 2047, Pakistan needed to tackle the challenges of 2.6% population growth rate and climate change.
