Minister Celebrates Falling Inflation, Calls for Structural Reforms for Sustainable Stability
In a recent address in Islamabad, Finance Minister Muhammad Aurangzeb expressed his satisfaction with the decline in inflation, emphasizing that the government’s ongoing program with the International Monetary Fund (IMF) would be the last—provided that essential structural reforms are executed.
During the launch of the Pakistan Economic Dashboard, the minister highlighted notable economic progress, underlining the importance of structural reforms to achieve sustainable stability. “Inflation has decreased more than we expected,” he noted, while stressing that ongoing efforts are crucial to maintain this positive trend.
Aurangzeb also pointed out a rise in the number of tax filers, asserting that boosting the tax-to-GDP ratio is vital for long-term economic health. “We need to expand our tax base to ensure economic stability,” he remarked. “Our economy is moving in the right direction, and we must seize this momentum by implementing necessary reforms.”
On the topic of borrowing, the minister clarified that the government is not desperate for loans; when necessary, it will borrow on its own terms. He urged the banking sector to lend more to the private sector, reinforcing Prime Minister Shehbaz Sharif’s belief that the government should provide a supportive policy framework while allowing the private sector to lead economic growth.
Addressing the business community, Aurangzeb explained that the focus should be on the KIBOR as a benchmark rather than just the policy rate. “We need to leverage this macroeconomic stability to continue with structural reforms,” he added.
He acknowledged the longstanding need for improvements in tax-to-GDP ratios, energy sector reforms, state-owned enterprise (SOE) reforms, and privatization. “This is a fantastic opportunity; we must embrace this defining moment with vigor in terms of structural reforms,” he urged.
Discussing the Pakistan Economic Dashboard, the minister emphasized that data alone is insufficient; it must be analyzed meaningfully through an interactive platform to provide transparency and drive effective decision-making. “It’s not just about having data; it’s about what you do with it,” he concluded.
