Latest news with #G20FinanceMinistersandCentralBankGovernors'Meeting
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.
Express Tribune
28-02-2025
- Business
- Express Tribune
Finance minister meets high-level Jefferies team
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 A high-level delegation from Jefferies Investors, led by Alia Moubayed, met with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, in Islamabad on Thursday to discuss Pakistan's economic outlook, investment climate, and ongoing reforms. The delegation invited the finance minister to the Pakistani Investors Day in London, scheduled for May 2025, as part of efforts to strengthen engagement with global investors. Aurangzeb highlighted Pakistan's economic stabilisation and the government's commitment to structural reforms in taxation, energy, state-owned enterprises (SOEs), and privatisation. He highlighted the country's stable macroeconomic position and outlined measures for fiscal discipline, revenue mobilisation, and investment facilitation. Key tax reforms were discussed, including the activation of the National Tax Council to enhance federal-provincial coordination and the expansion of the tax base by formally including the wholesale, retail, and real estate sectors. The minister also noted that all four provinces had approved the agricultural income tax bill, set to take effect on July 1, 2025. Additionally, he confirmed the shift of tax policy from the Federal Board of Revenue (FBR) to the Finance Division for a more strategic approach. The discussion also covered fiscal consolidation, rightsizing expenditures, and export-led growth, with the minister emphasising a structural shift in Pakistan's economic model. He provided updates on capital market developments, including ongoing Panda Bond discussions as part of Pakistan's external financing strategy. He reiterated the need for tactical support in capacity building, particularly in addressing population growth and climate change, which he termed as critical long-term challenges for Pakistan. The delegation acknowledged Pakistan's economic progress and expressed interest in investment opportunities in capital markets, infrastructure, and emerging sectors. They appreciated the government's reform agenda and efforts to enhance investor confidence.
Express Tribune
26-02-2025
- Business
- Express Tribune
FinMin credits govt for 'economic stability'
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 Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Wednesday stated that the government is striving for sustainable and inclusive economic growth, which is essential for the nation's progress and prosperity. Addressing a meeting at the Sarhad Chamber of Commerce and Industry (SCCI) as the chief guest, alongside Minister of State for Finance and Revenue, Ali Pervaiz Malik, Senator Muhammad Aurangzeb said that the country has achieved economic stability due to the federal government's goal-oriented policies and economic reforms, which are now showing positive effects on people's lives. He emphasized the government's commitment to broadening the tax base and advancing with a focused approach to transform Pakistan into an export-led economy. The taxation process has been simplified, and the Tax Policy Office will be operationalized within a few days to facilitate taxpayers, industrialists, and the business community. He further highlighted that information technology and digitalization have been introduced in the Federal Board of Revenue (FBR) to enhance efficiency, save time, and ensure greater transparency in financial affairs. Pakistan, he stated, is moving in the right direction, and the private sector must step forward to play a crucial role in the country's development. He urged the private sector to take the lead in promoting business and industrialization, particularly in the mineral-rich regions of Khyber Pakhtunkhwa and Balochistan. The government, he assured, would provide full support to facilitate business growth and industrialization, thereby generating employment opportunities for youth and reducing poverty in K-P. As a result of prudent economic and fiscal policies, he noted that inflation has been brought down to a single-digit level, while rice and IT exports have recorded significant growth over the past year, underscoring the government's commitment to inclusive economic development.
