Muhammad Aurangzeb Archives

Pakistan’s economy shows signs of improvement, Finance Minister says

July 8, 2026 by Newsdesk

ISLAMABAD: Finance Minister Muhammad Aurangzeb said Wednesday that the country’s key economic indicators have improved under the new fiscal year’s budget, citing lower inflation, stronger foreign exchange reserves and increased investor confidence.

Aurangzeb made the remarks during a meeting with a delegation from S&P Global Ratings, where the two sides discussed Pakistan’s economic outlook, sovereign credit profile and the government’s reform agenda.

The finance minister said economic reforms and fiscal policies had led to continued improvements in Pakistan’s economic performance. He added that a lower fiscal deficit, a record primary budget surplus and improved debt management had strengthened the country’s fiscal sustainability.

According to a statement, the S&P delegation acknowledged the government’s commitment to economic reforms, fiscal discipline, debt sustainability and macroeconomic stability.

Officials also briefed the delegation on ongoing reforms in taxation, the energy sector, state-owned enterprises, privatization, governance and public financial management, saying the measures were aimed at strengthening the economy and improving international investor confidence.

Finance Minister Aurangzeb says economy moving in right direction

June 13, 2026 by Newsdesk

ISLAMABAD: Finance Minister Muhammad Aurangzeb said Saturday that Pakistan’s economy is moving in the right direction and the country is now shifting from stabilization toward growth.

Addressing a post-budget press conference in Islamabad, Aurangzeb said the government aimed to provide relief to lower-income salaried individuals, noting reductions in income tax rates for different salary brackets.

He said the tax rate for certain salaried categories had been reduced from 5% to 1%, while another bracket was lowered from 15% to 13%, adding that feedback on measures targeting higher-income earners and surcharges had been positive.

The finance minister said taxes in the construction sector had been reduced to encourage activity, while agricultural credit had increased by 15%, exceeding 2 trillion rupees in volume.

He added that efforts were underway to strengthen a fertilizer-related scheme and that small farmers would no longer be required to mortgage their homes to access loans. He also said a youth loan program worth 262 billion rupees includes 125 billion rupees allocated for agriculture.

Aurangzeb said customs duties, additional customs duties and regulatory duties had been eliminated on imported agricultural machinery to support the sector.

He said inflation is expected to ease further if geopolitical tensions in the Middle East subside, adding that economic stability indicators have shown improvement over the past year.

The minister said the government had introduced measures in the budget to improve taxation and export systems, including 70 billion rupees in additional subsidies aimed at boosting exports.

He acknowledged pressure on the energy infrastructure but said it would continue to remain a challenge in the coming fiscal year.

Aurangzeb also expressed gratitude to provincial governments for their financial cooperation with the federal government, saying the arrangement would continue for the next three fiscal years.

Pakistan imposes excise duty on imported luxury vehicles

June 12, 2026 by Newsdesk

ISLAMABAD: Pakistan has decided to impose Federal Excise Duty (FED) on imported vehicles, including SUVs and luxury electric cars, Finance Minister Muhammad Aurangzeb said during his budget speech on Friday.

The minister said SUVs with engine capacities between 2,000cc and 3,000cc will now be subject to FED, while higher rates will be applied on imported vehicles above 3,000cc.

He added that luxury electric vehicles priced above Rs20 million will also come under the new tax regime as part of efforts to increase government revenue from high-end imports.

Aurangzeb said the new auto policy is currently under review by a committee formed by the prime minister.

However, he announced that incentives for electric motorcycles, rickshaws and buses will remain unchanged to support green transportation.

He further said a 1% sales tax facility is being proposed for imported electric trucks to encourage cleaner logistics solutions.

In a separate announcement, the finance minister said the Federal Excise Duty on business class air travel abroad has been abolished, providing relief to international travelers.

Officials said the measures reflect a mix of revenue-raising steps and targeted incentives aimed at supporting sustainable transport while broadening the tax base.

Pakistan unveils Rs18.77 Trillion federal budget for FY 2026–27

June 12, 2026 by Newsdesk

ISLAMABAD: Pakistan on Friday unveiled a Rs18.771 trillion federal budget for the fiscal year 2026–27, focusing on fiscal consolidation, tax reforms, defense spending, development projects, and targeted relief measures, Finance Minister Muhammad Aurangzeb announced in the National Assembly.

Presenting his third budget, the finance minister thanked coalition partners and said the government remained committed to stabilizing the economy and sustaining growth momentum.

Aurangzeb said Pakistan’s economy had reached $452 billion, while per capita income increased from $1,751 to $1,901. He added that GDP growth stood at 3.7% in the outgoing fiscal year, despite economic challenges including floods and regional geopolitical tensions.

He said large-scale manufacturing grew by 6.1%, while the services sector posted 4.1% growth. Foreign exchange reserves have risen from $4 billion three years ago to over $17 billion, enough to cover three months of imports, he said.

Remittances reached $38 billion in the first 11 months of the current fiscal year and are expected to exceed $41 billion by year-end, the minister added.

Budget Deficit and Revenue Targets

The government projected GDP growth of 4% for the next fiscal year, with inflation estimated at 8.2%. The budget deficit is expected at 3.6% of GDP, while the primary surplus is projected at 2%.

Federal Board of Revenue (FBR) tax collection has been set at Rs15.264 trillion, while total federal expenditures are estimated at Rs18.771 trillion. Interest payments alone account for Rs8.054 trillion.

Defense, Salaries and Welfare Spending

Defense expenditure has been allocated Rs3 trillion. Pension costs are estimated at Rs1.169 trillion, including Rs822 billion for military pensions.

Civil administration spending is set at Rs1.071 trillion, while subsidies amount to Rs1.091 trillion.

The government announced a 7% increase in salaries and pensions for federal employees and a 10% increase in the minimum wage.

The Benazir Income Support Programme (BISP) has been allocated Rs838 billion, a 17% increase from the previous year.

Tax Reforms and Relief Measures

The budget proposes relief for salaried individuals across multiple income slabs and the abolition of a 9% surcharge on salaried income.

It also proposes the elimination of super tax for income between Rs15 crore and Rs50 crore, while reducing the rate for higher incomes from 10% to 8%. However, the levy will remain on banks, oil and gas exploration companies, and fertilizer firms.

A fixed tax regime is being introduced for small shopkeepers with annual sales below Rs20 crore, allowing them to pay 1% tax on turnover.

Taxes on property transactions, exports, and foreign card usage have also been reduced, while capital value tax on foreign assets has been abolished.

Energy, Development and Infrastructure

The Public Sector Development Programme (PSDP) has been set at Rs1 trillion, while the overall development budget stands at Rs3.675 trillion, including provincial shares.

Major allocations include Rs100 billion for the N-25 highway upgrade, Rs30 billion for the Sukkur-Hyderabad motorway, and Rs25 billion for initial work on ML-1.

The government also allocated funds for water projects, including Rs14 billion for Diamer-Bhasha Dam, Rs22 billion for Mohmand Dam, and Rs10 billion for the K-IV water project in Karachi.

Vehicle and Energy Taxes

The budget introduces new Federal Excise Duty proposals on imported SUVs and luxury vehicles, including higher rates for vehicles above 3,000cc and taxes on electric vehicles priced above Rs20 million. Incentives for electric motorcycles, rickshaws, and buses will continue, while a 1% sales tax facility is proposed for imported electric trucks.

Social and Sectoral Spending

Health development projects have been allocated Rs25.1 billion, while higher education receives Rs46 billion. Women’s health products and contraceptives will be tax-free under the new proposals.

The IT sector export income tax incentive of 0.25% has been extended for three years.

Officials said the budget aims to balance growth, revenue generation, and targeted social support while maintaining macroeconomic stability.

Finance Minister highlights 3.7% growth despite external pressures

June 11, 2026 by Newsdesk

ISLAMABAD: Pakistan’s economy demonstrated resilience during the outgoing fiscal year despite domestic and international challenges, Finance Minister Muhammad Aurangzeb said Thursday while presenting the National Economic Survey.

Speaking in Islamabad, Aurangzeb said the survey reflects the country’s economic performance over the entire fiscal year, which began amid uncertainty caused by monsoon-related disruptions and global economic volatility, including tariff measures imposed by the United States on several countries.

He said the government successfully navigated multiple crises and that the economy performed better than expected despite internal and external pressures. Pakistan recorded economic growth of 3.7%, slightly below the government’s target of more than 4%.

Aurangzeb said the growth rate would likely have exceeded 4% had it not been for the crisis in the Middle East. He added that Pakistan’s economy expanded to more than $452 billion, while per capita annual income increased from $1,751 to $1,901.

The finance minister noted that global uncertainty had affected economies worldwide but said Pakistan maintained positive economic momentum despite regional tensions.

He said the petroleum sector posted 5% growth, while the current account recorded a surplus of $72 million during the July-March period. The agricultural sector grew by 2.89%, with dairy and livestock accounting for about 60% of agricultural output.

Aurangzeb also highlighted gains in exports, saying sports goods exports have surpassed $3 billion and information technology exports are expected to reach $4.5 billion. He noted that footballs manufactured in Pakistan will be used at the FIFA World Cup.

The minister said reducing imports remains a government priority and added that foreign exchange reserves currently stand at $17.1 billion and are projected to reach $18 billion by the end of June.

Govt announces fixed tax scheme for small shopkeepers

June 5, 2026 by Newsdesk

ISLAMABAD: The government has announced a fixed tax scheme for small shopkeepers aimed at simplifying the tax system and improving compliance, officials said on Friday.

Finance Minister Muhammad Aurangzeb, speaking at a press conference, said the initiative has been introduced in consultation with small traders and on their demand, adding that taxpayers seek greater ease in tax procedures.

Minister of State for Finance Bilal Azhar Kayani said the scheme will apply to shopkeepers with annual sales of Rs 20 crore or less.

He said participating traders will submit sales details through a one-page form. A minimum payment of Rs 25,000 in cash will be required, while an additional 1% tax will be applied based on turnover. The scheme includes a fixed 1% tax component, and any previously deducted withholding tax will be adjustable.

Kayani said the initiative has been developed in consultation with trader associations and will be open to all shopkeepers willing to participate by submitting the prescribed form.

He added that businesses enrolled in the scheme will be issued a plate by the Federal Board of Revenue (FBR), displaying the shop’s name, owner details and other information.

The scheme will be available to both filers and non-filers, he said.

According to Kayani, eligibility requires that participants’ tax payment should not be less than the previous year’s level. Shopkeepers joining the scheme will also be exempt from the point-of-sale (POS) system requirement.

PM Shehbaz forms committee to review Rs72b oil sector windfall gains

May 26, 2026 by Newsdesk

ISLAMABAD: Prime Minister Shehbaz Sharif has constituted a high-powered committee headed by Finance Minister Muhammad Aurangzeb to review the country’s cross-subsidy framework and examine the recovery of an alleged 72 billion rupees in windfall profits earned by oil marketing companies.

The committee, formed ahead of the upcoming federal budget, will also evaluate broader fiscal and economic priorities, including expenditure rationalization, development spending allocation, energy sector reforms and the implementation of rightsizing measures across ministries and divisions.

Officials said the panel will be responsible for reviewing key financial planning areas for the next budget cycle, particularly efforts aimed at improving efficiency in public spending and reducing the fiscal deficit.

Finance Minister Muhammad Aurangzeb will chair the committee, while the ministers for economic affairs, planning and law will serve as members.

Former bureaucrat Musharraf Rasool has been appointed as chief technical adviser, while the additional secretary for budget will also be part of the committee.

The panel is expected to submit its recommendations to the prime minister after completing a comprehensive review of economic and administrative reforms.

Meanwhile, government is preparing to recover an estimated 72 billion rupees in windfall profits from oil marketing companies (OMCs) in the upcoming fiscal year 2026-27, according to official sources.

Finance Ministry sources said a windfall gain tax could be imposed on OMCs after companies earned extraordinary profits on petroleum products during recent regional tensions.

Officials said the recovered amount may be used to provide petroleum subsidies, reduce electricity tariffs and help narrow the fiscal deficit.

Sources added that the government is examining legal and financial mechanisms to reclaim the extraordinary profits earned by the oil marketing sector.

Petrol Price Shock: Government raises rate to Rs458.40 per litre

April 2, 2026 by Newsdesk

ISLAMABAD: The government has announced a sharp increase in petroleum prices, significantly raising the cost of petrol and diesel while introducing targeted subsidies to cushion the impact on vulnerable segments.

Federal Minister for Petroleum Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb jointly addressed a press conference, confirming that petrol prices have been increased by Rs137.23 per litre, bringing the new rate to Rs458.40 per litre.

Diesel prices have also surged by Rs184.49 per litre, with the new price set at Rs520.35 per litre. An official notification has been issued, and the revised prices will come into effect from midnight tonight.

The finance minister announced a targeted subsidy package aimed at easing the burden on lower-income groups. He said motorcyclists will receive a subsidy of Rs100 per litre on up to 20 litres of petrol per month.

Additionally, intercity public transport will be provided a subsidy of Rs100 per litre on diesel, while truck and goods transport operators will receive a monthly fuel subsidy of Rs70,000. The government will also extend support to Pakistan Railways to help manage fare increases.

Aurangzeb said the decisions were taken in consultation with the country’s leadership, emphasizing that the shift from blanket subsidies to targeted relief is intended to ensure assistance reaches those who need it most.

Petroleum Minister Ali Pervaiz Malik said the global situation, particularly ongoing regional tensions, has severely impacted energy markets. He noted that crude oil prices have witnessed record increases, with diesel in international markets exceeding $250 per barrel.

He highlighted that global supply routes, particularly through the Strait of Hormuz, remain under pressure, and even countries with strategic reserves have declared energy emergencies.

Malik stressed that the government had made every effort to protect citizens through austerity measures and expenditure cuts, but was ultimately compelled to increase prices due to international commitments and rising costs.

He added that a high-level meeting involving the prime minister and chief ministers concluded that blanket subsidies were no longer sustainable amid soaring global prices.

“Timely decisions ensured uninterrupted fuel supply,” he said, adding that the government remains committed to mitigating the impact on the public while navigating the ongoing economic challenges.

NFC to hold talks on resource allocation today

December 4, 2025 by Newsdesk

ISLAMABAD: The 11th meeting of the National Finance Commission (NFC), tasked with distributing resources between the federal government and provinces, has commenced.

The session is being chaired by Federal Finance Minister Muhammad Aurangzeb, with the IMF also on board for discussions regarding the new NFC award.

According to sources from the Ministry of Finance, all four provincial finance ministers, technocrats, and commission members are participating. The provincial representatives include Nasser Mahmood Khosa from Punjab, Asad Saeed from Sindh, Mahfooz Khan from Balochistan, and Musharraf Rasool from Khyber Pakhtunkhwa. All NFC members have been invited to the meeting, while the Federal Secretary of Finance is serving as the official expert for the commission.

The agenda includes reviewing recommendations for the new award, considering the formation of sub-groups, and setting the roadmap for future meetings. Finance Minister Aurangzeb stated, “We will approach the meeting with a ‘Pakistan First’ mindset, listen to the provinces, and present the federal financial position transparently.”

The current seventh NFC award has been in effect since July 2010. The Constitution mandates a review every five years, but the scheduled 2015 meeting did not take place until now.

A day prior, a key consultative meeting was held under the chairmanship of Khyber Pakhtunkhwa Chief Minister, Sohail Afridi, to prepare for the NFC session.

During the briefing, the CM was informed about the province’s financial and constitutional rights in NFC discussions. He emphasized that despite the administrative merger of former FATA, financial integration has not yet occurred.

Under the NFC, the merged districts are entitled to PKR 1,375 billion, which has not been provided. At the time of merger, an annual allocation of PKR 100 billion was promised, which now totals PKR 700 billion. Of this, only PKR 168 billion has been disbursed by the federal government, leaving a balance of PKR 531.9 billion.

CM Sohail Afridi stressed that withholding the merged districts’ share violates the Constitution, and the province’s financial and constitutional rights will be fully protected.

Aurangzeb highlights Google’s interest in turning Pakistan into export hub

November 5, 2025 by Newsdesk

KARACHI: Federal Finance Minister Muhammad Aurangzeb announced that Google intends to develop Pakistan as an export hub, a move that underscores increasing global confidence in the country’s economic potential and digital growth prospects..

Speaking at the Future Summit in Karachi, the finance minister said Pakistan’s economy is moving in the right direction, with a renewed focus on production-led and sustainable growth. “The private sector plays a crucial role in driving economic progress. Our goal is to make Pakistan an export-oriented economy, with particular focus on the IT and maritime sectors,” he added.

Aurangzeb noted that international rating agencies have acknowledged Pakistan’s improving economic indicators, highlighting macroeconomic stability and a 9 percent rise in corporate profits.

He further said that efforts to broaden the tax base have resulted in an increase of 900,000 new filers. “Digitization will bring transparency to the economy, and countries like Egypt have expressed interest in learning from Pakistan’s FBR reforms,” he remarked.

The finance minister emphasized that structural reforms are essential for sustainable economic growth. He added that Pakistan will continue to build an ecosystem to leverage global diplomatic successes, promote AI-driven development, and tap into the vast potential of the blue economy.

Aurangzeb also disclosed that the government has decided to privatize 24 state-owned enterprises, with the privatization of Pakistan International Airlines (PIA) expected to be completed before the end of this year.