Finance Minister Muhammad Aurangzeb has announced that Pakistan’s tax-to-GDP ratio is expected to reach 10.6% by the end of the current fiscal year. This progress, he said, marks a significant step toward the government’s broader goal of reaching a 13% ratio by the conclusion of its 37-month program with the International Monetary Fund (IMF). He shared these insights during a Zoom meeting with S&P Global Ratings as part of Pakistan’s sovereign ratings review.
Aurangzeb outlined the government’s macroeconomic reform agenda, stressing the importance of sustainable growth, higher productivity, and increased exports. Key reforms include the separation of the Tax Policy Office from the Federal Board of Revenue (FBR), which aims to prioritize economic principles in policymaking over administrative routines. The minister also emphasized continued reforms in taxation, energy, state-owned enterprises, and public finance management.
He highlighted improvements in the primary balance and current account, along with controlled inflation and a narrowing current account deficit. These, he noted, are helping stabilize Pakistan’s economy. Foreign reserves, held by the State Bank of Pakistan, are projected to rise to $14 billion by June—boosted by inflows from institutions, strong remittances, and easing oil prices.
Aurangzeb also shared feedback from his recent visit to the U.S. for the World Bank/IMF Spring Meetings, where Pakistan’s structural reforms were reportedly well-received. He concluded by affirming that international partners are urging Pakistan to stay on course and solidify the economic gains made over the past year.