Global rating agencies recognise Pakistan’s economic progress

ISLAMABAD: Pakistan’s economic progress has received international recognition, with global rating agencies acknowledging the country’s growing financial stability, Finance Minister Muhammad Aurangzeb said during a press conference.

The minister highlighted that the government remains committed to implementing a comprehensive agenda of structural economic reforms. “We have achieved success in ensuring microeconomic stability. Our direction is correct, and the staff-level agreement with the IMF further confirms our economic stability. Reductions in the policy rate have already had a positive impact on the economy,” he added.

Aurangzeb said that the government’s primary goal is to secure sustainable economic stability while continuing with reforms aimed at strengthening the country’s financial system.

Increase in tax collection and compliance

Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial reported a significant rise in tax filings. “In the past year, tax-to-GDP ratio increased by 1.49 percent. Our target is to raise the tax ratio to 18 percent, combining provincial revenue and public debt levies,” he said.

He added that the federal government aims to collect 15 percent of revenue, while provinces contribute three percent. “The pressure for revenue collection is higher on the federal level, but thanks to effective measures, tax collection has improved considerably,” he explained.

Langrial revealed that the number of individual tax filers has grown from 4.9 million to 5.9 million, reflecting increased compliance. He further noted that reforms in the taxation system take time to implement, but the government is following through with all budget-approved measures. Weekly review meetings chaired by the Prime Minister ensure coordination, and Langrial stressed that the FBR currently has the necessary cooperation from all relevant institutions, removing the immediate need for new taxes.

Energy sector reforms deliver relief to consumers

Minister for Energy Awais Leghari shared that the government has been modernising the energy sector over the past 18 months, resulting in a reduction of electricity prices by 10.5 percent. “Wherever possible, we have provided relief to the public. The task force on IPPs has made notable progress,” he said.

Leghari announced that the government will no longer directly purchase electricity, citing an effective plan to eliminate circular debt. “In the past year alone, circular debt has decreased by Rs700 billion. Automatic metering will provide prepaid facilities to consumers, and by resolving technical challenges in the energy sector, we have achieved substantial savings,” he added.

The combined measures in taxation and energy sectors underscore the government’s efforts to stabilise the economy while delivering tangible benefits to citizens.