Pakistan’s current account will remain in surplus throughout fiscal year 2024–25, Finance Minister Muhammad Aurangzeb confirmed. He shared this outlook at a pre-budget seminar in Karachi. This statement differs slightly from the more cautious forecast by the State Bank of Pakistan. However, Aurangzeb remains optimistic about the economy’s direction.
The Finance Minister projected that the tax-to-GDP ratio would reach 10.6% for FY25. Over the next three years, the government plans to raise this to 13.5%. This growth will come from ongoing tax reforms. Aurangzeb also emphasized that this would be Pakistan’s last IMF program. He reaffirmed the government’s commitment to fiscal reforms.
Aurangzeb assured that the government would prioritize tax relief for businesses and salaried individuals. At the same time, it will continue to support economic growth in FY26. The upcoming budget will be based on advice from independent analysts. It will also align with international best practices, focusing on fairness in taxation.
Despite challenges like high taxes, costly energy, and expensive financing, there are signs of progress. The central bank’s recent policy rate cut has made credit more affordable. However, Aurangzeb noted that there is still more work to be done. The government continues to review areas for further tax relief and reforms.