Finance Minister Muhammad Aurangzeb presented the coalition government’s first budget since the recent elections. Expressing gratitude towards the coalition leadership, he highlighted the country's impressive progress despite facing substantial economic challenges.
"Our progress on the economic front has been excellent," the minister stated during his budget speech in the National Assembly. "Today, nature has given Pakistan the opportunity to follow the path of economic development, and we cannot afford to waste this opportunity."
He acknowledged that the economy had faced severe difficulties a short while ago, with the rupee devaluing by Rs40 in one year and inflation pushing many people below the poverty line. However, he emphasized that the IMF Standby Arrangement had paved the way for economic development, and the country is now moving in the right direction. He noted that inflation is decreasing and is expected to decline further in the coming days.
Highlighting investor interest, the minister noted, "Investors are looking for investment opportunities in various sectors. With the achievements of the last year, the country has come out of crisis. We have to achieve the goal of economic self-sufficiency. Pakistan will soon return to stable growth."
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He stressed the need for economic reform, stating, "The road is hard, and our options are limited. It's time for reform. Private investment should be prioritized in the economy. In the past, the state was burdened with unnecessary expenses, leading to inflation. We have to promote exports and take bold steps to bring about changes in the economic system."
Aurangzeb also emphasized the importance of public welfare and the need for energy sector reforms. He revealed that discussions are ongoing for another program with the IMF, focusing on reducing the budget deficit, increasing income, and cutting unnecessary expenses. The government plans to restructure and privatize State-Owned Enterprises (SOEs) to improve efficiency.
"In the past year, inflation was at 38%. A better economic strategy has reduced inflation, and the government aims to bring it down to single digits," he added.
Tax reform is a critical aspect of the government's economic strategy. The minister mentioned that Prime Minister Shehbaz Sharif was closely monitoring reforms in the Federal Board of Revenue (FBR) and is committed to expanding the tax net. Efforts to bring more people into the tax net will be intensified in collaboration with provincial governments.
Reforms in the pension system are also underway, and the government is considering eliminating vacant posts within the federal government. Additionally, the PM has ordered the closure of the Pakistan Public Works Department (PWD) to streamline government operations and reduce expenses.
