ISLAMABAD: Pakistan’s finance minister, Muhammad Aurangzeb, said on Monday the South Asian country aimed to increase its revenue by 1.5 percent of the gross domestic product this fiscal year under a new $7 billion loan deal with the International Monetary Fund (IMF).
The Pakistani finance minister said this during a virtual meeting with representatives of Fitch Ratings agency, including Senior Director Thomas Rookmaker, and Directors Asia Pacific Krisjanis Krustins and Jeremy Zook.
The discussions encompassed ongoing reforms in the energy sector and state-owned enterprises, including privatization and “rightsizing” of government entities to streamline operations and improve governance, according to the finance ministry.
Aurangzeb informed the rating agency about multilateral institutions’ confidence in financing Pakistan’s projects and briefed them on the staff-level agreement reached with the IMF this month to bolster Pakistan’s homegrown economic reform agenda.
“The Federal Minister apprised the Fitch representatives of salient features of the new program which includes setting a target of increasing our revenues by 1.5 percent of GDP in FY 2025 and by 3 percent over the coming 3 years,” the finance ministry said in a statement. “A primary surplus of 1 percent of GDP will also be achieved for FY 2025.”
He provided an extensive update on Pakistan’s current economic landscape and highlighted Pakistan’s foreign exchange reserves had reached $9.4 billion, robust stock exchange performance, and CPI inflation recorded at 12.6 percent in June.
The minister noted a 7.7 percent rise in foreign remittances and emphasized the government’s efforts to broaden the tax base, citing a 30 percent increase in tax collection during the outgoing fiscal year as compared to previous year.
“More than 150,000 retailers have registered as first-time tax payers. The IT exports crossed the figure of USD 3 billion,” Aurangzeb was quoted as saying by his ministry.
Pakistan’s new government presented its first budget in parliament last month, setting an ambitious tax collection target. Aurangzeb said at the time Pakistan wanted to collect Rs13 trillion ($44 billion) in taxes, which would be 40 percent more than the outgoing fiscal year.
“The representatives from Fitch Ratings appreciated the ambitious targets and fiscal measures adopted by the Government of Pakistan and acknowledged the improvement in economic indicators,” the finance ministry added.
Pakistan aims to increase revenue by 1.5 percent of GDP this year under new IMF deal — minister
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Pakistan aims to increase revenue by 1.5 percent of GDP this year under new IMF deal — minister
- The statement came during Finance Minister Muhammad Aurangzeb’s virtual meeting with representatives of Fitch Ratings agency
- The discussions encompassed reforms in energy sector and state enterprises, including privatization and ‘rightsizing’ of entities
Pakistan, China to sign multiple MoUs at major agriculture investment conference today
- Hundreds of Chinese and Pakistani firms to attend Islamabad event
- Conference seen as part of expanding CPEC ties into agriculture, trade
KARACHI: Islamabad and Beijing are set to sign multiple memorandums of understanding (MoUs) to boost agricultural investment and cooperation at a major conference taking place in the capital today, Monday, with hundreds of Chinese and Pakistani companies expected to participate.
The conference is being billed by Pakistan’s Ministry of National Food Security and Research as a platform for deepening bilateral agricultural ties and supporting broader economic engagement between the two countries.
“Multiple memorandums of understanding will be signed at the Pakistan–China Agricultural Conference,” the Ministry of National Food Security said in a statement. “115 Chinese and 165 Pakistani companies will participate.”
The conference reflects a growing emphasis on expanding Pakistan-China economic cooperation beyond the transport and energy foundations of the flagship China-Pakistan Economic Corridor (CPEC) into agriculture, industry and technology.
Under its first phase launched in 2015, CPEC, a core component of China’s Belt and Road Initiative, focused primarily on transportation infrastructure, energy generation and connectivity projects linking western China to the Arabian Sea via Pakistan. That phase included motorways, power plants and the development of the Gwadar Port in the country's southwest, aimed at helping Pakistan address chronic power shortages and enhance transport connectivity.
In recent years, both governments have formally moved toward a “CPEC 2.0” phase aimed at diversifying the corridor’s impact into areas such as special economic zones, innovation, digital cooperation and agriculture. Second-phase discussions have highlighted Pakistan’s goal of modernizing its agricultural sector, attracting Chinese technology and investment, and boosting export potential, with high-level talks taking place between planning officials and investors in Beijing.
Agri-sector cooperation has also seen practical collaboration, with joint initiatives examining technology transfer, export protocols and value-chain development, including partnerships in livestock, mechanization and horticulture.
Organizers say the Islamabad conference will bring together government policymakers, private sector investors, industry associations and multinational agribusiness firms from both nations. Discussions will center on investment opportunities, technology adoption, export expansion and building linkages with global buyers within the framework of Pakistan-China economic cooperation.
