Islamabad: July 23, 2024: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb had a zoom meeting with the representatives from Moody’s Ratings at Finance Division today (Tuesday). The meeting was also attended by senior officials of the Ministry.
The Federal Minister commenced the session by giving an update on Pakistan’s economic outlook. He highlighted the foreign exchange reserves surpassing USD 9 billion, stable CPI inflation at 12.6%, and a robust 7.7% increase in foreign remittances, reflecting economic resilience. He emphasized a 30% rise in tax collection in FY 2024 and outlined reforms to broaden the tax base, including new agricultural taxes and digital initiatives at the FBR. He also noted that over 150,000 retailers have registered as first-time taxpayers, marking a significant stride towards broadening the tax base. The Minister mentioned the ambitious targets aimed to increase revenues by 3% of GDP by FY 2027, with plans for a primary surplus of 1% of GDP, demonstrating Pakistan’s commitment to fiscal sustainability and growth.
Furthermore, Minister Muhammad Aurangzeb updated Moody’s representatives on the successful completion of Pakistan’s 9-month Stand By Arrangement with the IMF, emphasizing its positive impact on macroeconomic indicators. He highlighted multilateral institutions’ confidence in financing Pakistan’s developmental projects and apprised Moody’s of Pakistan’s recently finalized Staff-Level Agreement (SLA) with the IMF for a new medium-term program. The Minister underscored ongoing reforms in the energy sector and State-Owned Enterprises, including privatization and rightsizing efforts aimed at improving operational efficiency and governance.
Moody’s Ratings representatives appreciated the comprehensive briefing and expressed confidence in Pakistan’s economic trajectory underpinned by robust fiscal reforms and strategic initiatives.
