Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Sunday reaffirmed the government’s dedication to export-led growth, highlighting agriculture and information technology (IT) as pivotal sectors for driving Pakistan’s sustainable economic progress.
Key Sectors for Economic Growth
Speaking to farmers and stakeholders in Kamalia (Toba Tek Singh), the finance minister stressed the importance of agriculture and IT in shaping Pakistan’s economic future. “We are very clear, agriculture and IT have to lead this country as we move forward,” he stated.
Commitment to Stabilisation and Growth
Aurangzeb expressed optimism about Pakistan’s economic trajectory, pointing to positive indicators under the International Monetary Fund (IMF) stabilisation programme. He emphasized the need to address challenges in agriculture and IT, urging stakeholders to find solutions for ensuring sustainable development in these sectors.
Despite the presence of numerous research institutions focused on agriculture, the minister voiced concerns over their limited impact on boosting crop yields. He noted that a significant portion of their budgets (80%) is spent on salaries, leaving only 20% for research—a situation he described as needing urgent reform.
Achievements in Economic Stability
Aurangzeb highlighted the government’s success in achieving macroeconomic stability, which he described as a foundation for GDP growth. “Building on this achievement, Pakistan’s economy is poised to transition towards sustainable growth from 2025 onwards,” he said. He added that independent sources had corroborated these claims, enhancing the credibility of Pakistan’s economic progress.
Indicators of Progress
The minister pointed to several positive trends as evidence of prudent government policies, including:
- Reduction of inflation to single digits.
- Lowering of interest rates.
- Increased consumption of cement and fertilizer.
- A 58% surge in auto sales.
Reforms in Key Sectors
Aurangzeb reiterated the government’s commitment to reforms in taxation, energy, and state-owned enterprises (SOEs). He stressed the need to improve Pakistan’s tax-to-GDP ratio, which currently stands at 9-10%, with a target to increase it to 13.5%. The government also plans to simplify the taxation process, digitize systems, and minimize human intervention.
On energy, the minister expressed optimism about reducing tariffs and highlighted ongoing efforts to curb losses in DISCOs by implementing reforms with private sector involvement. He emphasized that while the government’s role is to ensure regulations, the private sector should drive economic growth.
Agriculture and Higher Education Reforms
Aurangzeb announced plans to replace the Pakistan Agricultural Storage and Services Corporation (Passco) with an alternative mechanism, potentially managed by the private sector, to maintain strategic reserves. He also raised questions about the effectiveness of the Higher Education Commission (HEC).
Support for Farmers and Stakeholders
The finance minister assured farmers and other stakeholders of his full support in addressing their concerns. He reiterated the government’s commitment to serving the people and advancing Pakistan’s economic future through targeted reforms and strategic investments.