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Federal Minister for Finance and Revenue Muhammad Aurangzeb has reiterated the government’s firm commitment to transforming recent macroeconomic stability into sustainable and inclusive economic growth. Speaking at a press conference following a high-level meeting with the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, Aurangzeb emphasized that all economic reforms and initiatives will be carried out with the full engagement of stakeholders from both national and international business communities.
The press conference was attended by Khurram Schehzad, Advisor to the Finance Minister, Yousaf Hussain, President of OICCI, and Abdul Aleem, Secretary General of OICCI.
Budget Measures for Real Estate and First-Time Buyers
Aurangzeb highlighted various budgetary measures introduced in the 2025-26 federal budget to support the real estate and construction sectors, with a particular focus on first-time property holders and small housing units. He said the government is actively working on the provision of affordable housing finance, and the State Bank of Pakistan (SBP) is finalizing a comprehensive loan scheme to ensure easy credit access for home buyers.
The aim is to boost investment and employment in construction-related industries while expanding housing access for the middle and lower-middle classes.
Strengthening Investor Confidence
The finance minister shared that he held separate meetings with leaders of the banking sector and overseas investors, where discussions centered on the improved macroeconomic indicators recorded during the last fiscal year. He noted that stability in key economic metrics has reduced the government’s dependence on domestic borrowing, enabling greater credit availability for the private sector—especially in agriculture, trade, and industry.
Govt Ban Turning Bikes into Rickshaws
Aurangzeb underlined the critical role of both domestic and foreign investors in Pakistan’s economic transformation, adding:
“We want to take national and international investors along in Pakistan’s journey towards sustainable growth.”
Privatization and Industrial Revival on Track
Discussing progress on structural reforms, the finance minister elaborated on the privatization of state-owned enterprises (SOEs), including Pakistan International Airlines (PIA) and 24 other entities. He mentioned that a policy framework is being developed to guide the revival of sick industrial units, and private-sector participation is expected to be central in this process.
The minister confirmed that top executives from the banking sector and SBP Governor participated in the meeting where this agenda was deliberated at length. Encouragingly, he noted that several major private sector players have shown readiness to participate in the upcoming privatization drives.
Tax Reforms: Simplification and Safeguards
Addressing the issue of taxation, Finance Minister Aurangzeb spoke about the transformation of the Federal Board of Revenue (FBR) aimed at simplification and digitalization of tax processes. He asserted that these reforms would build public trust and encourage compliance among individuals and businesses.
On the controversial matter of enhanced powers granted to tax authorities, he clarified that the issue was extensively debated clause-by-clause in both houses of Parliament and that technical input from legal experts was taken into account.
He explained that arrest provisions for suspected sales tax fraud exceeding Rs. 50 million will only be exercised after approval from a three-member FBR board at the commissioner level, introducing a safeguard mechanism to prevent misuse.
Relief Measures for Salaried Class and SMEs
The minister highlighted significant income tax relief measures for the salaried class, noting that simplified tax return forms were introduced to make compliance easier. Aurangzeb said the government remains committed to extending these simplification efforts to small traders and SMEs in the near future, ensuring wider access to formal financial systems.
“We wanted to facilitate the salaried class through simplification of the process, and the same facility will be extended to small traders and SMEs in the future,” he added.
Upcoming Dialogue with Business Community
To address concerns regarding new tax laws and economic measures, the finance minister revealed that a meeting with business community representatives is scheduled for Tuesday in Islamabad. This dialogue aims to gather feedback and build consensus over government initiatives, especially those related to taxation and compliance.
