Pakistan’s tax-to-GDP ratio will be increased to 13-14 percent in the next four years but pensions remain a ‘big liability’ and massive reforms are needed to overcome this burden, Finance Minister Muhammad Aurangzeb said in a press briefing on Tuesday.
Talking to reporters alongside Information Minister Attaullah Tarar and Law Minister Azam Nazir Tarar, Aurangzeb said the federal government will take steps to control pension costs, briefly hinting at raising the retirement age as a start. He emphasized the critical role of infrastructure development in enhancing the country’s economy and called for urgent tax reforms.
He emphasized the need for tax and pension reforms and outlined strategies to bolster the economy with the help of the private sector.
Finance Minister said the International Monetary Fund (IMF) will send a team to Pakistan this month to negotiate a new loan program that will encourage international cooperation and positively impact the country’s financial policies and future prospects.
On
investment talks, Aurangzeb said the recent Saudi visit was a success. He said economic goals are advancing in the right direction and acknowledged a big improvement in foreign exchange reserves after the IMF deposited $1.1 billion with the State Bank of Pakistan.
Addressing fiscal discipline, the Minister underscored the need to reduce non-development expenditures. He pledged to collaborate with the private sector to drive economic growth and emphasized the importance of controlling pension costs for long-term financial stability.
Aurangzeb also hinted at collaboration with China through capital market initiatives.
Law Minister Azam Nazir Tarar said discussions with the IMF will focus on climate financing and digitalization. He assured transparency in pension reforms and legal amendments to encourage inclusive governance.
Source: Pro Pakistani