Pakistan’s current account to stay in surplus through FY25, says FM Aurangzeb

Pakistan’s crazy account is expected to remain in a surplus throughout the financial year 2024-25, Finance Minister Muhammad Aurangzeb said, slightly from the more careful promotion of the central bank.

Speaking in a seminar before the budget hosted by the Pakistani Commerce and Industry Federation (FPCCI) in Karachi, Aurangzeb said the government’s prospects remain optimistic despite the Pakistani state bank (SBP).

He added that the country’s tax index is expected to increase to 10.6% of this use, with plans to further increase 13.5% over the next three years through ongoing tax reforms.

“This will be the latest IMF program for Pakistan,” Aurangzeb said, stressing the government’s commitment to structural fiscal reforms.

He said the government would prioritize tax relief for businesses and leased people “where possible”, while continuing to support FY26 economic activity.

The minister noted that the budget for FY26 was shaped by an influx of independent analysts and was in line with the global best practices.

“Each sector must pay its share of taxes to facilitate the burden of leased order and manufacturing industry,” he said, acknowledging that the IMF program can limit fiscal flexibility in the near future.

Aurangzeb has identified high taxation, increased energy costs and expensive funding as key obstacles facing the economy.

He noted that financial expenses have been reduced after cutting the Central Bank’s 10 points in June 2024, reducing the interest rate to 12%and making it more viable for businesses to have access to credit.

“We are headed in the right direction, but more must be done,” he said, adding that the government is re -examining further areas for tax relief.