Federal Finance Minister Senator Muhammad Aurangzeb set out Pakistan’s reform priorities at an Atlantic Council session titled “Reform efforts in Pakistan and the challenges ahead.”
Opened by President & CEO Fred Kempe and moderated by Dr. Aasim M. Husain. Husain congratulated Pakistan on completing the first year of the IMF supported program and a fresh staff level agreement.
The Atlantic Council talk: reforms, IMF validation, growth path
Finance minister said macro stability has been consolidated, citing IMF and ratings agency validations, tighter fiscal management, improved sovereign spreads, and the first current account surplus in 14 years.
He framed a private sector led, export driven model backed by a new National Tariff Policy to lower duties on raw and intermediate inputs.
On fiscal reform, he detailed efforts to widen the net to agriculture, retail, and real estate, deploy AI driven compliance. Moreover, lifting the tax to GDP ratio from 10.2% to 11% this year and 13% over the medium term.
He also highlighted a National Fiscal Pact with provinces and an inaugural NFC meeting expected in early November.
Population growth: the first “existential” threat
Calling rapid population growth an existential risk, the minister linked human capital strains to budget pressures and productivity.
He said the medium term plan prioritises private investment in IT and minerals (including Reko Diq) to create jobs and raise exports. While keeping a market based exchange rate under State Bank oversight to support competitiveness.
| # | Province/Region | Population (Millions) | Year |
|---|---|---|---|
| 1 | Punjab | 128.0 | 2023 |
| 2 | Sindh | 55.7 | 2023 |
| 3 | Khyber Pakhtunkhwa | 40.9 | 2023 |
| 4 | Balochistan | 14.9 | 2023 |
| 5 | Islamabad Capital Territory | 2.36 | 2023 |
Climate change: the second “existential” threat
Citing flood damage, Aurangzeb said Pakistan financed rescue and relief domestically, reflecting strengthened capacity, and launched a 300 day national plan for rehabilitation and resilience.
Growth for FY-2025 was revised modestly above 3% to reflect climate impacts.
He urged sustained global support alongside domestic reforms to protect vulnerable communities and safeguard the recovery.
