Finance Minister Muhammad Aurangzeb proposed increasing the retirement age and restructuring pension payments to reduce economic pressure. He discussed this during a press conference in Islamabad, which followed a cabinet meeting and included Information Minister Attaullah Tarar and Law Minister Azam Nazeer Tarar.
The minister reported signs of economic stabilization, including foreign exchange reserves exceeding $9 billion, a stable currency, and a decrease in inflation from 38% to 17%.
He also detailed discussions with UK and European investors, upcoming IMF consultations, and plans to raise the tax-to-GDP ratio from 9% to 13-14% through increased tax rates. Additionally, he spoke about reducing deficits in state-owned enterprises by pursuing privatization.
Law Minister Azam Nazeer Tarar emphasized the link between political and economic stability, stating, “It is about now or never. Perform or perish.” He highlighted efforts to retain experienced employees to lessen the financial burden on pensions with new legislation and a committee led by Prime Minister Shehbaz Sharif.
Tarar added, “International institutions talking about Pakistan’s economy is a proof and certificate of positive economic indicators.”
Last month, Aurangzeb projected that forex reserves would reach between $9 billion and $10 billion by the end of June. He affirmed that the economy is progressing in the right direction, with the government dedicated to spurring economic growth and comprehensive social development.
The minister also pointed to proactive measures to attract foreign direct investment, mentioning recent interactions with various countries, including Saudi Arabia. He expressed optimism about significant future collaborations with Saudi Arabia.
