Finance Minister Aurangzeb Says IMF Exit Impossible Without Structural Reforms, warning that Pakistan cannot achieve financial independence unless ongoing economic reforms are fully implemented.
Addressing a joint press conference in Islamabad alongside Federal Ministers Awais Leghari and Shaza Fatima Khawaja, FBR Chairman Rashid Mahmood Langrial, and Finance Secretary Imdadullah Bosal, the finance minister emphasized that sustainable economic growth depends on structural reforms. He said true economic sovereignty and long-term stability can only be secured once the reform agenda is completed.
Aurangzeb highlighted that major overhauls have already been introduced in state-owned enterprises, while the federal government is moving swiftly on rightsizing initiatives to improve efficiency. He also acknowledged the financial support extended by Saudi Arabia, China, and Gulf nations in stabilizing Pakistan’s economy.
Finance Secretary Imdadullah Bosal revealed that Rs 8.3 trillion has been allocated this fiscal year for interest payments, while Rs 9.8 trillion will go toward debt repayments, with Rs 2.6 trillion already repaid. He announced that Pakistan will soon issue Panda Bonds followed by Euro Bonds as part of its external financing strategy.
Bosal further stated that new government employees are being recruited under a Direct Contribution Pension Scheme, for which a new company is being established. He added that a similar pension model is being developed for the armed forces, given their earlier retirement age. He noted that while a neighboring country had implemented a comparable scheme, it was later withdrawn.
Meanwhile, FBR Chairman Rashid Mahmood Langrial briefed the media on tax reforms and institutional performance. He reported a significant increase in income tax filers, identifying a total tax gap of Rs 1.7 trillion, with the top five percent of taxpayers accounting for Rs 1.2 trillion of it.
Langrial said the Prime Minister personally reviews FBR’s performance every Tuesday, ensuring accountability and transparency within the institution. He disclosed that during enforcement actions in the tobacco sector, two FBR officers were martyred, while the Rangers have been providing full support.
He added that major governance reforms have been implemented, classifying officers into A, B, and C categories, and freeing the FBR from political and administrative interference. Digitalization efforts, he noted, have brought an additional Rs 75 billion in revenue from the sugar sector alone—Rs 42 billion in sales tax and Rs 33 billion in income tax. Taxes collected from retailers have also doubled, rising from Rs 82 billion to Rs 166 billion.
