Finance Minister Muhammad Aurangzeb has said that there is room to reduce the interest rate, but the final decision rests with the State Bank of Pakistan (SBP). Speaking to media in Karachi, he stated that Pakistan’s economy is now moving towards stability due to the government’s timely and smart decisions.
He noted that economic barriers have been removed, making the environment friendlier for both local and foreign investors. He revealed that multinational companies repatriated $2.3 billion in profits by the end of the last fiscal year. Issues like blocked profits and difficulties in opening LCs (letters of credit) have been resolved, he added.
The minister emphasized that banks must play a key role in economic revival. He urged them to partner with investors and help revive sick industrial units. In his recent meeting with the SBP governor and commercial bank presidents, Aurangzeb discussed how the banking sector can support economic development and stability.
Aurangzeb clarified that FBR’s increased revenue strength lies more in sales tax collection, not just income tax. He also said the government has reduced its spending and is actively working to cut circular debt. Privatization efforts will continue, and banks must also support this process, he said.
Addressing a question, he said salaried individuals have already received tax relief within available space. The government has made tax filing easier by uploading a user-friendly return form on FBR’s website. This form will also be extended to small traders and SMEs. While he wants rapid growth, Aurangzeb warned that rushing may pressure foreign reserves. Still, he believes a rate cut is possible, subject to SBP’s independent assessment.