 "'We have lost our credibility': Pakistan FM Aurangzeb says country is struggling to negotiate with lenders")
In an eye-opening revelation, Pakistan’s Foreign Minister Muhammad Aurangzeb said that the country has “lost its credibility,” warning that urgent economic reforms are needed to build trust. The remarks from the Pakistani finance minister came while he was addressing a Senate climate change committee meeting, which was being chaired by Sherry Rehman.
At the meeting, Aurangazeb briefed the senators on Pakistan’s financing challenge and how the country is handling negotiations with international leaders. During his address, he revealed that the Asian Development Bank (ADB) had committed $500 million, while Pakistan expects to secure $1 billion from the International Monetary Fund (IMF) next week, The Express Tribune reported.
The Pakistani finance minister also announced a major shift in tax policy, stating that the finance ministry will now oversee tax policy, while the Federal Board of Revenue (FBR) will focus solely on tax collection. Despite his concerns, Aurangzeb also stressed the need for structural reforms to achieve sustainable and inclusive economic growth.
Aurangzeb admits the disparity
While speaking at a separate event organised by the Pakistan Retail Business Council in Islamabad, Aurangzeb acknowledged that the salaried class bears a disproportionate tax burden. He went on to stress that retail, wholesale, real estate and agriculture must contribute fairly.
While speaking on energy reforms, the Pakistani finance minister insisted that difficult but necessary measures were being implemented to create a competitive energy market. Rehman on the other hand emphasised that Pakistan must strengthen its financial strategy to gain international support, noting that no assistance will come without a well-defined plan.
Earlier this week, Aurangzeb said that Pakistan will be able to meet its revenue goals for the year without further burdening existing taxpayers. However, he has yet to lay out a concrete plan in this regard.
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