FinMin Aurangzeb hints at final IMF programme if reforms succeed

Federal Finance Minister Muhammad Aurangzeb on Wednesday expressed optimism, stating that if the current reform agenda is implemented effectively, it may be the final time the country seeks assistance from the International Monetary Fund (IMF).

Speaking at a budget seminar in Karachi, the finance minister said that while signs of economic stability were beginning to emerge, long-term and sustainable growth hinges on structural reforms.

“The hope is that if we stay committed to reforms, this could be the IMF’s last programme for Pakistan,” Mr Aurangzeb told participants, underlining the government’s renewed focus on economic stabilization and fiscal discipline.

He said that the government aims to withdraw from commercial activities and transfer economic leadership to the private sector, acknowledging that persistent import growth remains a critical challenge for the economy.

Restoring trust through tax reforms

The finance minister reiterated the urgent need for comprehensive tax reforms to improve public trust and broaden the tax base. He said that while Pakistan’s population has crossed 240 million, the country’s tax-to-GDP ratio remains among the lowest in the region.

“The business community is willing to pay taxes, but they are dissatisfied with the current system,” he noted, citing grievances over direct dealings with the Federal Board of Revenue (FBR) as a major concern. “We want to minimize human involvement by leveraging digital tools and data, which will help curb harassment and eliminate the culture of negotiated taxes,” he added.