Federal Finance Minister Muhammad Aurangzeb has said that Pakistan’s solar energy capacity has reached 8000 megawatts. He stated that the country aims to further increase the share of renewable energy in its power mix. He highlighted this progress while speaking at a panel discussion on Pakistan’s economy at Harvard University.
He said the recent Middle East conflict created a major global supply shock for the world economy. However, he added that Pakistan managed to maintain continuity in energy supply during the crisis. He noted that after initial subsidies, the government shifted to full price pass-through with targeted support.
Read more: ADB backs Pakistan solar power reforms
Aurangzeb said Pakistan’s Eurobond repayment was a “non-event,” reflecting strong external confidence. He added that transit traffic at Karachi Port reached record levels recently. He also said remittances through Roshan Digital Accounts hit record highs in March. However, he stressed that remittances are not a long-term solution for economic stability.
He emphasized that structural reforms remain the biggest challenge for Pakistan’s economy. He said tax system reforms and efforts to raise the tax-to-GDP ratio are ongoing. He added that digitalization and automation in the Federal Board of Revenue are continuing. He also said the government is working on tariff reforms and greater global integration.
Read more: Weak grid holding back solar boom in Pakistan: report
The finance minister said agricultural income tax legislation has been completed across all provinces. He added that 28 state-owned enterprises have been referred for privatization. He further noted that population growth and climate change remain major challenges. He said improving the business environment remains a top government priority.