Latest news with #G20FinanceMinistersandCentralBankGovernors'Meeting
Express Tribune
6 days ago
- Business
- Express Tribune
Aurangzeb vows to close tax loopholes, boost investor confidence
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS Listen to article Federal Finance Minister Muhammad Aurangzeb on Wednesday pledged to close tax loopholes, enhance investor confidence, and maintain economic reforms, as he addressed the Rawalpindi Chamber of Commerce and Industry's Independence Day event. Aurangzeb said international institutions had welcomed Pakistan's reform measures, while recent Gallup surveys showed rising economic confidence. He noted a 60% growth in the stock exchange, an increase in new investors, and 250,000 new company registrations. Aurangzeb suggested the key policy rate could be cut further this year, citing falls in average and core inflation. Earlier in May, governor SBP, in a press conference along with other Monetary Policy Committee (MPC) members, announced a 100 bps cut, highlighting an improved inflation outlook and signs of moderate economic recovery. Beating the market expectations of a 0-50bps cut, the central bank reduced the policy rate by 100bps to 11% in a meeting," wrote Topline Securities. "We expect interest rates to come down to 10% by Dec 2025." Read: Policy rate slashed to 11% The minister said the government had finalised economic growth-focused agreements with the IMF, reached a favourable tariff deal with the United States, and was working on key accords with China. Panda bonds would be issued by year-end, and a benchmark for Sukuk bonds had been set, the finance czar. Aurangzeb further highlighted ongoing rightsising of 45 ministries, accelerated privatisation of state enterprises, and reductions in electricity tariffs, with further energy cost improvements expected. He assured that taxation reforms would not burden the salaried class and that the prime minister was personally overseeing FBR's transformation. Monthly meetings with chambers would be held to address business concerns. Read more: PM approves creation of digital ecosystem at FBR Calling for unity, Aurangzeb said the private sector must lead economic growth, with the government's role being to provide a favourable business climate.
Express Tribune
7 days ago
- Business
- Express Tribune
CJP-Aurangzeb huddle stirs the pot
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS In a rare turn of events, Chief Justice of Pakistan (CJP) Yahya Afridi and Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb have met face-to-face, stirring debate in legal circles about the propriety of such an engagement. The meeting between the judiciary's top office and the government's economic helm underscored the need for "coordinated efforts" between the judiciary and the executive to uphold the rule of law and safeguard citizens' rights. The unusual interaction, held without the Attorney General for Pakistan (AGP) Mansoor Awan present, was accompanied by an official photograph and press release, a move many lawyers believe was "uncalled for" and fraught with optics that blur the fine line between the judiciary and the executive. The meeting underscored the importance of coordinated efforts between the judiciary and the executive in upholding the rule of law and safeguarding citizens' fundamental rights. Some insiders point out that CJP Afridi and Aurangzeb are also former college fellows, stressing that the meeting should be viewed in that light. Nonetheless, for many lawyers, such engagements are "against judicial norms", particularly when the Federal Board of Revenue (FBR), which operates under the finance ministry, is one of the largest litigants before the Supreme Court. FBR disputes in spotlight Meanwhile, concerns are already high over the functioning of Alternate Dispute Resolution Committees (ADRCs) — bodies working under the FBR's administrative control to resolve tax-related matters, especially those involving state-owned enterprises (SOEs). Just last month, a bench headed by CJP Afridi ordered a stay on proceedings in all cases pending before ADRCs. The court also flagged concerns over how ADRC members were appointed, directing the FBR to seek input from all stakeholders before finalising the appointment framework. The matter will be heard again on September 8. One lawyer representing an SOE argued that the ADRC mechanism had proven "destructive" for such enterprises. "They are being crushed with taxation and have no remedy against the ADRC," he said, alleging that billions of rupees in taxes had been forcibly recovered in June, without legally required notices, to meet revenue targets. "All profit-making SOEs are being destroyed," he added, while another counsel argued that the ADRCs must operate independently and free from FBR influence to have credibility. Judicial independence worries Since the passage of the 26th Constitutional Amendment, legal experts have expressed unease over what they see as growing executive dominance over the judiciary. Even tax lawyers complain that higher courts were offering little relief to individuals aggrieved by FBR orders. The Sindh High Court, for instance, has reportedly delivered hundreds of judgments in the FBR's favour. At the SC, judges with expertise in revenue law are often not assigned to such matters. Against this backdrop, the optics of the CJP meeting the finance minister have unsettled some lawyers, who fear it may send the wrong signal to business stakeholders whose cases are awaiting adjudication in the apex court. They argue that the country's top judge should avoid creating any perception that the judiciary and executive are "on the same page" when it comes to revenue collection. However, it is also pertinent to mention that CJP Afridi has shown a willingness to engage across the political spectrum. In recent weeks, he has also met with PTI leader Omar Ayub and Barrister Gohar.
Express Tribune
28-04-2025
- Business
- Express Tribune
FinMin Aurangzeb highlights economic recovery at Harvard conference
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS Listen to article Finance Minister Mohammad Aurangzeb on Monday said the country had reached a pivotal moment of economic recovery and transformation, while inviting investors to join Pakistan's growth journey. Speaking at the Pakistan Conference 2025 at Harvard University, Aurangzeb outlined key achievements including historic reductions in inflation, a surge in foreign reserves, and a rebound in foreign direct investment. "After inheriting an economy facing significant challenges—from contracting GDP to depleting reserves—we have stabilised the fundamentals, restored confidence, and reignited growth," he said. The conference, organised by Harvard students with support from university research centres, is the largest student-led event on Pakistan in the United States. Aurangzeb highlighted that inflation had dropped to 0.7%, the lowest in 60 years, foreign reserves had doubled, and the currency appreciated by 3%. Pakistan recorded a current account surplus exceeding $1 billion in March 2025, he added. The minister also cited a 44% rise in foreign direct investment, a 24% growth in IT exports, and record-high remittances projected at $38 billion for 2025. Pakistan achieved a fiscal surplus for the first time in 24 years and secured a sovereign credit rating upgrade from Fitch to B- with a stable outlook. Aurangzeb stressed that stability was only a stepping stone, outlining the government's plans for fiscal discipline, structural reforms in energy, taxation, governance, and management of state-owned enterprises. He pointed to major growth opportunities in Pakistan's mineral resources, IT sector, green energy projects, and its young entrepreneurial population. On debt management, Aurangzeb said Pakistan reduced its public debt-to-GDP ratio from 75% to 67.2%, aiming to lower it below 60% in the medium term through fiscal reforms and enhanced domestic financing. Efforts to privatise loss-making state enterprises could save up to 2% of GDP annually, he added, stressing the importance of transparency and competitiveness in the process. Aurangzeb also outlined initiatives to deepen financial markets, expand digital banking, and promote green finance, while reaffirming Pakistan's commitment to climate resilience through partnerships with the IMF and World Bank. 'Pakistan's future will be shaped by bold, necessary choices,' Aurangzeb concluded. 'By investing in our people, modernising our economy, and committing to reform, Pakistan will emerge stronger, greener, and more competitive.'
Express Tribune
27-04-2025
- Business
- Express Tribune
FinMin for boosting regional trade
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS Listen to article Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a series of meetings and participated in discussions on the sidelines of World Bank and International Monetary Fund (IMF) Spring Meetings in Washington. According to press statements released on Saturday, the finance minister discussed trade diversification and highlighted the improvement in Pakistan's macroeconomic indicators and its endeavours to stimulate investment in high-yielding projects. In a panel discussion at the IMF on the theme of "Navigating an Uncertain World," Aurangzeb emphasised the importance of promoting regional trade in the wake of global uncertainty and elevated risks, which have affected different countries. He called for diversification of sectors and markets and the need to shift the economic model from import substitution to export-led growth. Terming the IT sector a real game changer, he recommended the integration of IT systems across government and private sector entities. The federal finance minister held a meeting with the senior management of JP Morgan Chase, where he briefed them that Pakistan's economic indicators were moving in the right direction. He underlined the necessity of pursuing a more sustained growth trajectory to avoid the recurrence of boom-and-bust cycles. He shared progress on the Reko Diq copper and gold mining project and said that there was a need to diversify Pakistan's markets and sectors. He expressed the desire to return to international capital markets through the launch of inaugural Panda Bond. While holding talks with senior representatives of the United States Export-Import (Exim) Bank, led by Acting First Vice President Jim Barrows, Aurangzeb briefed the bank's delegation on Pakistan's improving macroeconomic fundamentals and the fiscal consolidation measures undertaken by the government. He pointed out that Pakistan had successfully reached a staff-level agreement with the IMF on the first review of the Extended Fund Facility and on a new arrangement under the Resilience and Sustainability Facility. He provided an update on the progress on the Reko Diq project and outlined its significance in attracting foreign investment. He sought the Exim Bank support to facilitate greater US investment in Pakistan. The minister also expressed Pakistan's desire to engage constructively with the US to address tariff-related issues and strengthen bilateral ties. Separately, in a meeting with UK Minister of State for International Development Baroness Chapman, the finance minister praised Chapman for the UK's longstanding partnership with Pakistan and its continued support for socio-economic development. He briefed her on the World Bank's 10-year Country Partnership Framework for Pakistan, which has placed a strong emphasis on tackling population challenges and enhancing climate resilience. Highlighting Pakistan's commitment to digital reforms, the federal minister underscored the importance of reducing the human interface between tax collectors and taxpayers through the use of technology. He appreciated the role of ReMIT platform in mapping development assistance over the past two years and in formulating an effective communication strategy. In a separate huddle, Muhammad Aurangzeb briefed US International Development Finance Corporation Acting CEO Dev Jagadesan on Pakistan's macroeconomic outlook and the potential investment projects, including the Reko Diq mining project in Balochistan. He appreciated the participation of senior US officials in the recent Pakistan Minerals Investment Forum and saw immense potential for deepening mutually beneficial cooperation between Pakistan and the US. Aurangzeb also met International Finance Corporation Managing Director Makhtar Diop and his team on the sidelines of the IMF-World Bank Spring Meetings. While lauding Diop for his visit to Pakistan in March, he briefed the IFC delegation on the strong macroeconomic indicators of the country and the recent sovereign credit rating upgrade by Fitch, terming it external validation of the government's successful reform initiatives. The minister appreciated the IFC's support for the Reko Diq project and urged the corporation to expedite its advisory work on the Karachi airport. He agreed with the IFC MD on the need to focus more on subnational governments and build their capacities for enhanced development impact.
Express Tribune
23-04-2025
- Business
- Express Tribune
Pakistan showcases economic turnaround
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS Listen to article The embassy of Pakistan in Washington DC hosted an economic dialogue on the sidelines of the IMF and World Bank Spring Meetings, bringing together Pakistan's economic leadership, global financial institutions, and corporate representatives from the US. The event showcased Pakistan's remarkable economic turnaround and its potential as a global investment destination. Finance Minister Muhammad Aurangzeb, in his address, emphasised the pivotal role of the private sector in driving Pakistan's economic future, stating that the government's role was to provide policy frameworks and ensure continuity. He described the shift as a "mindset and societal change," likening it to the transformative impact of artificial intelligence. He responded to questions related to the ease of doing business and reiterated the commitment to reforms. The finance minister identified population growth and climate change as two major challenges and called for private sector collaboration in different projects by leveraging the available financing and technical expertise. He reaffirmed the PM's vision of running Pakistan as "Pakistan Inc" with the government acting as public servants to facilitate investors. Ambassador Rizwan Saeed Sheikh highlighted Pakistan's geostrategic and geo-economic significance as a market of 250 million people and a gateway to Central Asia, China, the GCC, and Afro-Asian regions.
