Jefferies Investors discuss economic reforms with FinMin

February 27, 2025 (MLN): Pakistan’s economic stabilization, structural reforms, and investment opportunities were the focus of discussions as a delegation of Jefferies Investors met with the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, in Islamabad.

The delegation explored the country’s macroeconomic outlook, investment climate, and key policy initiatives aimed at fiscal discipline, revenue mobilization, and economic growth.

The Finance Minister highlighted the government’s commitment to reforms in taxation, energy, state-owned enterprises (SOEs), and privatization, emphasizing that Pakistan’s economy is now stable in quantitative terms.

He detailed the activation of the National Tax Council to improve coordination between the federal and provincial governments, the expansion of the tax base to include wholesale, retail, and real estate sectors, and the implementation of agricultural income tax, which will take effect from July 1, 2025, following approval by all four provinces.

Additionally, he noted that tax policy has been shifted from the Federal Board of Revenue (FBR) to the Finance Division to ensure a strategic and policy-driven approach, as per the press release issued today.

Discussions also covered capital markets and investment facilitation, including ongoing Panda Bond negotiations as part of Pakistan’s external financing strategy.

The Minister underscored the need for capacity building to address long-term challenges such as population growth and climate change.

On the fiscal side, he highlighted the government’s rightsizing measures to control expenditures and promote an export-led economic model.

The delegation expressed interest in investment opportunities in Pakistan’s capital markets, infrastructure, and emerging sectors, acknowledging the government’s reform efforts and improved economic conditions.

They also invited the Finance Minister to the Pakistani Investors Day in London, scheduled for May 2025, to further strengthen engagement with global investors.

The meeting concluded with a commitment to deepening economic collaboration and facilitating foreign investment.

The delegation was led by Ms. Alia Moubayed from Jefferies and included representatives from HBK Investment Management, Barings, Ashmore, Fidelity, Jefferies, and Ktrade Securities.

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