Senator Muhammad Aurangzeb, Minister for Finance and Revenue, announced that the Chinese Government has praised Pakistan’s negotiations with the International Monetary Fund (IMF) and promised to assist in securing the Fund’s board approval. Addressing a press conference, he highlighted productive meetings with Chinese authorities, including the Finance Minister of China and the President of the Bank of China, during a recent visit with Minister for Energy Sardar Awais Ahmad Khan Leghari.
Aurangzeb noted that discussions covered various aspects of bilateral trade, economic cooperation, local energy needs, and the launch of Panda bonds in Chinese markets. The talks also addressed the re-profiling of energy sector loans and converting energy plants to coal for more affordable energy generation.
He emphasized China’s readiness to help Pakistan through memorandums of understanding and working groups. Pakistan plans to issue bonds to attract Chinese investors, diversifying funding sources and strengthening foreign exchange reserves.
Prime Minister Shehbaz Sharif has engaged Chinese leadership to secure support for Pakistan’s energy requirements, crucial for socio-economic development. Aurangzeb stated that discussions with the IMF were positive, with all benchmarks achieved. China, Saudi Arabia, and the UAE continue to support Pakistan’s economic growth.
Domestically, the government is focusing on broadening the tax base, targeting non-taxed sectors, and simplifying tax returns. The Tajir Dost Scheme encourages voluntary tax compliance for unregistered businesses. Efforts to digitize the tax system and identify tax non-filers are underway, with 4.9 million identified based on travel and vehicle ownership data.
The government is also right-sizing ministries to reduce expenditure and create fiscal space for social development. Work on five ministries is in progress, aiming to streamline operations and improve efficiency.
Aurangzeb acknowledged that GST measures in the 2024-25 Federal Budget increased inflation but warned against artificial price hikes of essential commodities. He directed provincial governments to enhance vigilance and ensure fair prices to ease the burden on citizens.
