Aurangzeb: Tariff Reforms for Export Growth – Business
- Islamabad – Pakistan is banking on tariff reforms to stimulate an export-led economy, according to Finance Minister Muhammad Aurangzeb.
- Aurangzeb emphasized the importance of the National Tariff Policy in achieving economic goals.
- The finance minister also addressed concerns about potential revenue declines, asserting that these reforms are essential for long-term economic advancement.
Finance Minister Muhammad Aurangzeb unveils Pakistan’s plan for export-led growth, focusing on tariff reforms to boost the economy. The government is actively eliminating additional customs duties and reducing tariffs across numerous lines to benefit exporters and lower raw material costs—a commitment to sustained economic progress. Aurangzeb highlights incentives for real estate and construction, wiht a target tax-to-GDP ratio of 10.9%. News Directory 3 keeps you informed. Wondering about the government’s next moves in agriculture and international markets? Discover what’s next.
Pakistan Aims for Export-Led Growth Through Tariff Reforms
Islamabad – Pakistan is banking on tariff reforms to stimulate an export-led economy, according to Finance Minister Muhammad Aurangzeb. Speaking at a press conference Wednesday,Aurangzeb detailed the government’s strategy following the unveiling of the federal budget for the upcoming fiscal year.
Aurangzeb emphasized the importance of the National Tariff Policy in achieving economic goals. He noted that the government has already eliminated additional customs duties in four areas and reduced them across 2,700 tariff lines,directly benefiting exporters by lowering raw material costs. These measures, he saeid, represent an “East asia moment for Pakistan,” signaling a commitment to sustained, gradual reform.
The finance minister also addressed concerns about potential revenue declines, asserting that these reforms are essential for long-term economic advancement. The budget includes incentives for the real estate and construction sectors, aiming to revive industry and boost economic growth.Aurangzeb highlighted a 0.5% reduction in super tax for the corporate sector as further relief.
The press conference,however,began with a walkout by journalists protesting the lack of a technical briefing by the Federal Board of Revenue (FBR) on the Finance Bill 2025. Despite the initial disruption, Aurangzeb, flanked by FBR Chairman Rashid Mahmood Langrial and Finance Secretary Imdadullah Bosal, continued the briefing with a smaller group of reporters.
Aurangzeb acknowledged the journalists’ concerns and expressed regret for any perceived oversight. Langrial offered to hold a separate technical session, explaining that the decision to forgo the briefing was intended to streamline the process.
Regarding salaries and pensions, Aurangzeb advocated for benchmarking them against inflation, a common practice worldwide. He defended the decision not to increase the minimum wage, citing feedback from industries suggesting the current level is adequate.
Aurangzeb also addressed the agricultural sector, noting that a proposed tax on fertilizers and pesticides was scrapped after negotiations with the International Monetary Fund (IMF), recognizing their critical importance to agriculture.
The government aims to achieve a tax-to-GDP ratio of 10.9% in the coming year. Aurangzeb stated that additional taxes account for approximately Rs312 million of the total Rs2.2 trillion target. He emphasized the importance of enforcement, noting that improved enforcement measures have already exceeded Rs400 billion.
“This is an East Asia moment for pakistan.whatever was available in the fiscal space is the direction of travel. We have tried to reduce tariffs. This is not the eventual end state.”
What’s next
Pakistan plans to continue its focus on tariff reforms and enforcement measures to achieve its economic goals.The government intends to engage with journalists regularly to ensure transparency and address concerns. Future steps include reducing the role of middlemen in agriculture,increasing financing for small farmers,and improving the international credit rating to access euro and US dollar markets by 2026.