FinMin highlights success of Pakistan’s economic reforms

May 07, 2025 (MLN): Pakistan’s ambitious economic reform agenda, focused on diversification and export-led growth, is beginning to yield positive results, according to Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.

The Minister made these remarks during a meeting with Lord Livermore, the UK’s Financial Secretary to the Treasury and Growth Minister at HM Revenue & Customs, in London.

Also present at the meeting were Dr. Mohammad Faisal, Pakistan’s High Commissioner to the United Kingdom; Khurram Schehzad, Advisor to the Finance Minister; and officials from the Pakistan High Commission in London.

Senator Aurangzeb noted that recent government policies have led to economic stabilization, with improved indicators: Real GDP growth is projected at 3.0% for 2025 and 4.0% for 2026, while inflation has fallen to a historic low of 0.3%.

The Minister also emphasized ongoing efforts to digitize the tax system, which is expected to broaden the tax base and boost revenue. He shared that tax collection rose to 25.9% during July–March FY 2025.

Foreign Direct Investment saw a 14% increase, reaching $1.6 billion in the same period, while the policy rate declined to 11%.

Lord Livermore commended Pakistan’s reform agenda and acknowledged the country’s commitment to broad-based economic transformation.

He noted that the UK is similarly pursuing reforms across pensions, skills development, and trade, according to the press release issued today.

Senator Aurangzeb expressed appreciation for the UK Treasury’s continued partnership and support, particularly through the Foreign, Commonwealth & Development Office (FCDO), which has provided valuable financial and technical collaboration.

He reaffirmed Pakistan’s commitment to strengthening investment and trade ties between the two nations.

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