FM Aurangzeb briefs UK envoy on fiscal reforms, budget progress

July 16, 2026 (MLN): Pakistan and the United Kingdom have agreed to further strengthen their economic and development cooperation, with discussions centering on the country's macroeconomic outlook and ongoing reform agenda.

British High Commissioner to Pakistan Jane Marriott called on Federal Minister for Finance and Revenue Muhammad Aurangzeb at the Finance Division, where the two sides reviewed avenues to deepen bilateral ties across economic governance, fiscal reforms, climate resilience, public finance, health, and social development, according to a press release issued.

The finance minister acknowledged the UK's continued support for Pakistan's economic reforms, noting the successful passage of the Federal Budget 2026-27, ongoing fiscal consolidation efforts, and measures aimed at sustainable economic growth alongside macroeconomic stability.

He said the government remained committed to implementing structural reforms, broadening the tax base, improving public financial management, and strengthening investor confidence.

The two sides also discussed Pakistan's population management and public health initiatives, with the Finance Minister appreciating UK technical support for population stabilization interventions.

He stressed the need to institutionalize population planning through a coordinated national framework with measurable outcomes, while drawing on international best practices to promote women's education and workforce participation.

Finance minister Aurangzeb highlighted the government's strategy to deepen access to international capital markets and diversify financing sources, citing ongoing work on international bond issuances, Sukuk, Panda Bonds, and the tokenization of sovereign debt as part of the Medium-Term Debt Management Strategy.

He said continued engagement with international investors and financial institutions would remain central to strengthening Pakistan's external financing profile.

The meeting also touched on reforms within the Federal Board of Revenue, with the finance minister pointing to efforts to modernize tax administration through technology-driven, faceless, AI-enabled, and risk-based systems to improve transparency and enhance revenue mobilization.

Discussions further covered the broader structural reform agenda, including energy sector reforms, privatization of state-owned enterprises, and measures to improve governance and service delivery, which the minister said were essential to strengthening Pakistan's long-term economic resilience.

The British high commissioner, for her part, welcomed Pakistan's progress in restoring macroeconomic stability and reiterated the UK's continued support for the reform agenda.

Both sides agreed to maintain close coordination on trade, investment, financial markets, and climate resilience, and to deepen engagement between the two countries' public and private sectors.

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