Fiscal consolidation delivering results, says Aurangzeb as govt courts investors in London

Pakistan's fiscal consolidation is proving effective, according to Finance Minister Muhammad Aurangzeb, as the government endeavors to entice overseas investment at a roundtable discussion in London. The discussion, hosted by the Pakistan High Commission, brought together prominent investors and global financial firms. Aurangzeb, the keynote speaker at the event, stressed the government's commitment to macro-economic stabilization and steady growth.

He highlighted the implementation of structural reforms, aimed at empowering the private sector. Aurangzeb also detailed the government's initiatives, including reforms in State-owned Enterprises, privatization, energy sector improvements, financial transparency, and efforts to enhance ease of doing business. Expanding the tax base and ensuring compliance were deemed crucial for economic growth, he added.

Aurangzeb revealed that tax authorities would no longer have discretionary powers and would not exhibit preferential treatment in taxation, although no new taxes have been imposed on the salaried class. The finance minister acknowledged that last year's widespread flooding and recent Middle Eastern conflict had adversely impacted oil prices worldwide and caused a temporary setback to Pakistan's economy.

Despite these challenges, Aurangzeb emphasized that Pakistan is receptive to business, with renewed investor interest emerging. The country had completed all IMF reviews on schedule, and these reviews were confirmed by three rating upgrades. During the roundtable, Aurangzeb interacted with financial institutions representatives, discussing Pakistan's economic landscape, investment climate, cooperation with international organizations, and potential opportunities across various sectors.