Government assures US businesses of policy stability

May 17, 2025 (MLN): To create a more structured and predictable policy environment, the government has assured American businesses of its firm commitment, as conveyed during a meeting between the Federal Minister for Finance and Revenue and a delegation of the American Business Council (ABC) at the Finance Division.

The delegation was led by Mr. Kamran Attaullah Khan, President of ABC, and included senior executives from leading US companies operating in Pakistan.

Senior officers from the Finance Division and Federal Board of Revenue (FBR) were also present, as per the press release.

At the outset, the Minister shared insights from his recent visit to Washington for the Spring Meetings of the World Bank and International Monetary Fund (IMF), where he and his team had held productive discussions with the US-Pakistan Business Council.

He appreciated the longstanding contributions of American businesses to Pakistan’s economic development and stated, “The scale and depth of US investment in Pakistan is both significant and valuable and we look forward to further expanding this partnership.”

The ABC delegation presented several proposals and raised sector-specific concerns.

The Minister welcomed their input and emphasized the importance of timely submission of budget proposals, noting that “dialogue should be continuous and not confined to the budget cycle.”

He further mentioned that efforts are underway to strengthen the Tax Policy Office and establish an Advisory Panel for ongoing consultation.

Highlighting Pakistan’s macroeconomic stabilization, Senator Aurangzeb reiterated that the government is fully committed to staying the course on structural reforms.

“If Pakistan is to break free from the boom-and-bust cycles and avoid returning to the IMF for a 25th program, sustained reforms are imperative,” he asserted.

The Minister also acknowledged the critical role of the formal sector in national revenue.

He underlined the government’s resolve to broaden the tax base, ensure enforcement across all sectors, and shift the burden away from compliant taxpayers. “There will be no room for leakages in supply and value chains.

Our aim is to formalize the economy through end-to-end digitization and FBR reforms, and we have some of the best minds working on this through the IT arm of the FBR,” he said.

On capacity building, Senator Aurangzeb noted that while financing for reform initiatives is in place, the need now is for tactical support and technical expertise.

“We need know-how more than capital in certain areas, and welcome collaboration in that regard,” he added.

The delegation thanked the Minister for the candid discussion and reaffirmed their commitment to working closely with the government.

The meeting concluded on a positive note, with both sides agreeing to strengthen engagement to collectively address key economic challenges and unlock new opportunities for trade and investment.

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