CAMBRIDGE: Finance Minister Muhammad Aurangzeb Khan has said that Pakistan successfully managed its economic situation despite the ongoing Middle East crisis, describing the regional conflict as a major global supply shock.
Speaking at a high-level panel discussion on Pakistan’s economy at Harvard University, the finance minister stated that the country ensured continuity in energy supplies during the crisis.
He noted that after initial subsidies, energy prices were fully passed on while targeted subsidies continue to support vulnerable segments.
Aurangzeb emphasized that Pakistan handled the challenging situation effectively, adding that the recent Eurobond repayment remained a “non-event,” reflecting confidence in the country’s external payment position.
He also highlighted a record increase in transit traffic at Karachi Port and noted that remittances through the Roshan Digital Account reached record levels in March, though he stressed that remittances are not a sustainable long-term solution and exports must be prioritized.
He further stated that the real challenge lies in implementing structural reforms, including improvements in the tax system and efforts to increase the tax-to-GDP ratio. He added that digitization and automation processes are ongoing within the Federal Board of Revenue (FBR).
The finance minister also pointed out that permanent subsidies for industries are being phased out in favor of a more competitive economic model. Efforts are underway to reform tariffs and integrate Pakistan more effectively into the global market.
Highlighting progress in the energy sector, Aurangzeb said that solar power generation in the country has reached 8,000 megawatts, with plans to further increase the share of renewable energy.
He concluded by noting that agricultural income tax legislation has been completed across all four provinces, while 28 state-owned enterprises have been referred to the Privatization Commission.
He identified population growth and climate change as major challenges, adding that improving the business environment remains a key government priority.
