BeNewz
Federal Finance Minister Senator Muhammad Aurangzeb emphasized the government’s commitment to structural reforms aimed at building a resilient economy and fostering sustainable growth during his address at the inaugural session of the 2-day Pakistan Banking Summit 2025.
Organized by the Pakistan Banks Association to enhance industry collaboration and global integration, the summit marked a significant platform for discussing key economic strategies.
Senator Muhammad Aurangzeb highlighted the government’s rigorous decision-making that has led to notable improvements in macroeconomic stability, evidenced by advancements in critical indicators such as the current account balance, inflation rates, and stock market performance. He underscored ongoing reforms across sectors including the Federal Board of Revenue, fiscal management, public sector restructuring, governance enhancements, and energy policies as crucial to achieving sustainable economic stability.
In elaborating on the government’s reform agenda, Finance Minister stressed the importance of tax policy that considers economic impact beyond mere calculations. He affirmed the government’s determination to continue these reforms steadfastly, asserting the need for Pakistan to transform its economic framework towards sustainable and inclusive growth.
Acknowledging challenges posed by population growth and climate change, Senator Muhammad Aurangzeb highlighted Pakistan’s partnership with the World Bank focusing on these critical areas along with fiscal discipline. He also commended provincial governments for landmark legislation on agricultural income tax, viewed as a significant structural reform.
Looking ahead, Finance Minister outlined efforts to revive privatization initiatives for Pakistan International Airlines (PIA) and reduce federal expenditures through phased rightsizing measures. He emphasized the role of stakeholders, including the business community, in policy-making processes and invited their input through the Finance Ministry’s advisory board.
Addressing the banking sector’s pivotal role in economic growth and national financial inclusion, Senator Muhammad Aurangzeb urged banks to prioritize financing for SMEs, agriculture, livestock, dairy, and other key sectors. He praised the Pakistan Banks Association’s summit as a vital platform for addressing industry challenges and fostering collaborative solutions.
In response to media inquiries, Finance Minister disclosed upcoming reviews by International Monetary Fund (IMF) teams on climate finance measures and the country’s economic performance, underscoring international engagement in Pakistan’s economic reforms.
Chairman of the Pakistan Banks Association and CEO of the Bank of Punjab, Zafar Masud, echoed the summit’s objectives in his opening remarks, emphasizing the banking sector’s pivotal role as both the largest tax collector for the Federal Board of Revenue and a significant taxpayer within Pakistan. He highlighted advances in the cashless economy, financial inclusion, and collaborative efforts in restructuring Pakistan International Airlines (PIA) and enhancing data collection for the Federal Board of Revenue (FBR).
Zafar Masud stressed the importance of transitioning agriculture and SME sectors into the formal economy to expand their access to banking and financial services, thereby fostering broader economic growth and stability.