Aurangzeb Vows Crackdown on Tax Loopholes, Pledges Stronger 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
Federal Finance Minister Muhammad Aurangzeb has vowed to shut down tax loopholes, push ahead with economic reforms, and restore investor trust in Pakistan’s economy.
Addressing the Rawalpindi Chamber of Commerce and Industry during its Independence Day gathering on Wednesday, Aurangzeb said global financial institutions had welcomed Pakistan’s recent policy moves. He also cited fresh Gallup survey results showing an uptick in public confidence over the economic outlook.
Stock Market and Business Activity Climb
Highlighting positive trends, the minister noted that the Pakistan Stock Exchange had surged by 60%, accompanied by a wave of new investors and more than 250,000 company registrations in recent months.
Hints at Further Interest Rate Cuts
Aurangzeb signalled that the central bank’s policy rate could see more reductions before the year’s end, pointing to a steady drop in average and core inflation.
Back in May, the State Bank of Pakistan trimmed the benchmark rate by 100 basis points, bringing it down to 11% — a move that exceeded market forecasts. Analysts at Topline Securities now expect the rate to fall further to 10% by December 2025.
Trade Deals and Financial Instruments
Aurangzeb confirmed that the government had concluded growth-oriented agreements with the IMF, reached a tariff arrangement with the United States, and was in talks with China on major accords. He announced plans to launch Panda bonds by year-end and said a benchmark for Sukuk bonds had already been set.
Reforms, Privatisation, and Energy Relief
The minister outlined ongoing reforms, including the downsizing of 45 ministries, faster privatisation of state-owned enterprises, and recent reductions in electricity tariffs. He added that more measures to cut energy costs were in progress.
Aurangzeb stressed that the government’s tax reforms would spare the salaried class. He said the prime minister is personally overseeing the FBR’s digital transformation, with monthly meetings planned with business chambers to address investor concerns.
Call for Private Sector Leadership
Urging businesses to take the lead in driving growth, Aurangzeb said the state’s role should be to create a stable, pro-investment climate.
“The private sector is the engine of growth,” he told industry leaders. “Our job is to clear the path so it can run at full speed.”
Published in Daily Pak, August 13th, 2025
