Aurangzeb says budget to exhibit ‘bold initiatives'
While addressing an event organised by Karandaaz Pakistan and Pakistan Banks Association (PBA) here, the finance minister said that budget is not just about revenue and expenditure, it has to provide the strategic direction of where the economy is, and where it is heading.
He added that rather than making the math work, the government intends to make the budget document more strategic.
Govt to introduce 'bold measures' in the upcoming budget, says Aurangzeb
The federal budget for FY2025-26 will be presented on June 10, 2025.
Meanwhile, the Pakistan Economic Survey 2024-25 will be released on June 9, 2025.
Talking about the recent escalation of tensions between Pakistan and India, Aurangzeb said that these are very tense moments.
The entire nation has rightly celebrated the way our armed forces and political leadership have stood up against the aggression.
Aurangzeb shared that efforts were made to derail Pakistan's engagement with the International Monetary Fund (IMF).
He said, there was no stone left unturned in terms of ensuring that the meeting with the IMF does not happen. If the meeting does happen, then these items are not on the agenda, whether it is the second tranche under the Extended Fund Facility (EFF) and the $1.3 billion under the Resilience and Sustainability Facility (RSF).
However, we are beyond that, and our case was discussed and decided on merit.
He said the unity shown by the nation against recent aggression is the same unity needed on the economic front.
On macroeconomic stability, Aurangzeb emphasised the need to avoid repeating past mistakes.
He said that we have achieved macroeconomic stability in yesteryears and in the previous decades as well, but we have squandered the opportunity.
Because it is easy to get into a sugar rush, i.e. pump liquidity into the market, go for consumption-led growth, which triggers balance of payment and FX issues.
He said that to break away from the boom and bust cycle, Pakistan needs to stay the course in terms of structural reforms.
Aurangzeb shared that the government remains committed to simplifying the tax return filing process for the salaried class. '70-80 per cent of the salaried class do not necessarily hold equity or income portfolios, why should they fill 140-150 measures?
'We are trying to bring it down to nine items, five on the wealth and four on the income tax side.'
He said the government wants to implement the simplified process by the end of September.
On the SoE reforms, the finance minister admitted that this is one area where we did not do well last year.
He said that the government remains committed to accelerating reforms in this sector.
He confirmed the PIA transaction has been relaunched and expressed optimism about its completion. On debt servicing, Aurangzeb said in the ongoing fiscal the government debt servicing cost has decreased by Rs1 trillion. 'Next year, we are going to restructure/reorganize our debt management office along the modern lines,' he said.
The finance minister was of the view that the ongoing structural reforms would put Pakistan's economy 'on a path of sustainable growth'.
Aurangzeb expressed optimism about Pakistan's long-term economic trajectory.
Our economy has crossed the $400 billion level. This shows we are moving in the right direction but to become a $3 trillion economy by 2047, we need to mitigate two existential issues, i.e. population and climate.
He said four out of the six points under the 10-year Country Partnership Framework inked with the World Bank deal with climate and population.
Speaking about the importance of the initiative, Syed Salim Raza, chairperson Karandaaz, said: 'Karandaaz is proud to support Pakistan's financial sector as it transitions toward purpose-driven finance. This training is part of our broader commitment to building the institutional capacity required to align with global investment standards and deliver measurable development outcomes. By strengthening local capabilities in impact measurement and sustainable finance, we are laying the foundation for a more inclusive and resilient financial system.'
Addressing the participants, Director Development BHC Islamabad Jo Moir stated, 'This training underscores BHC's long-term engagement with Pakistan's financial sector. A decade ago, we supported the creation of Karandaaz as a special purpose impact finance vehicle. Today, it serves as a lighthouse for the sector, demonstrating scalable models for inclusive and sustainable finance.'
The workshop is being led by Alex MacGillivray, executive director at the JIM Foundation and a globally recognised expert in impact measurement. With a career spanning development finance institutions and advisory work international impact investors, MacGillivray has delivered a highly practical curriculum that blended theory with real-world applications.
'The idea was to move beyond traditional credit models and introduce a more purposeful financing approach, one that drives measurable outcomes alongside financial returns,' said MacGillivray. 'With the right institutional momentum and leadership, Pakistan can play a key role in the global impact investing movement.'
The training is covering a comprehensive range of topics, including strategic intent, impact governance, portfolio-level impact design, impact at exit and independent validation. Participants are engaging in interactive case studies, peer learning sessions, and scenario-based exercises aimed at translating concepts into actionable strategies.
Articulating the sector's commitment to sustainable finance, Muneer Kamal, CEO and Secretary General PBA, said, 'Pakistan's banking sector must lead from the front as we transition towards a more sustainable and impact-driven financial ecosystem. This partnership with MoF and Karandaaz reflects PBA's commitment to strengthening sectoral readiness and aligning capital with long-term national priorities.'
This training reinforces the commitment by MoF, Karandaaz and PBA's ongoing efforts to strengthen institutional capabilities in Pakistan's financial sector and support the country's transition toward sustainable, impact-oriented finance. As global standards for responsible investing continue to evolve, Karandaaz remains committed to equipping local actors with the tools and knowledge needed to access and manage development capital effectively.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
4 hours ago
- Express Tribune
Civil servants required to declare assets
Any person who files tax return after the end of due dates would be treated as a late filer and separate rates on the purchase or disposal of immovable property would apply to him. photo: AFP The federal government has fulfilled another key condition of the International Monetary Fund (IMF) by making the assets of public officials public. Now government officers from Grade 17 and above will be required to file their own and their family's assets digitally. With the president's approval, the Civil Servants (Amendment) Act 2025 has been issued via gazette notification. The Establishment Division has also forwarded the notification to all federal ministries and divisions. A new Section 15-A has been added to the Civil Servants Act 1973, which states that the details of government officials' assets will be made public through the Federal Board of Revenue. Officers will be required to disclose their domestic and foreign assets as well as their financial standing. The confidentiality of any officer's personal information will be maintained. Earlier this week, the government imposed new taxes on the public in line with IMF conditions. It has introduced a petroleum climate support levy with an additional climate levy of Rs2.50 per liter on petrol, diesel, and kerosene.
Business Recorder
6 hours ago
- Business Recorder
Combating climate chaos: call to action
EDITORIAL: Speaking at the opening of an aid conference in Seville city of Spain on Monday, UN Secretary-General Antonio Guterres noted that a two-thirds of the UN's sustainable development goals set for 2030 are off track, and over US$ 4 trillion in annual investment is needed to combat climate chaos and support the world's most vulnerable populations. His message basically highlights the fact that climate change is no longer a distant threat; it is already upon us and accelerating. From record-breaking heatwaves in Europe and North America to cycles of deadly floods and droughts in South Asia and Africa, climate-related disasters are exacting a rising toll on human lives, economies, and ecological systems. A key issue on the agenda in Seville was the urgent need to reform the international financial system to help poorer nations free themselves from mounting debt burdens that inhibit their respective capacity to achieve progress in healthcare, education and climate resilience. As per UN data, the total external debt of the least developed countries has more than tripled over the past 15 years. Many nations in the Global South, like Pakistan, have too small a carbon footprint, yet are most vulnerable to climate disasters brought on by global warming. Already facing the brunt of floods and droughts, they are forced to divert scarce resources away from economic development to debt servicing. The result is perpetuation of underdevelopment, vulnerability, and inequality. No surprise, then, that there is growing criticism from the Global South of the US-dominated global financial system, created in the aftermath of World War II, which they argue no longer reflects realities of today's interconnected world. Greater representation and equity are urgently needed. The UN chief has also highlighted a glaring imbalance: while some nations continue to subsidise fossil fuels, others are left struggling to fund clean energy transitions or recover from climate catastrophes. This is not only unfair; this is dangerously short-sighted. Since we are all in this together the response must reflect that reality. The industrialised wealthiest nations, responsible for the vast majority of historical greenhouse gas emissions, owe a climate debt to developing nations. The Seville conference offers a vital opportunity to reset the climate and development agenda. For far too long, the international financial architecture has served the interests of the rich and powerful nations. What is needed now is major reform of the international finance system, with a focus on increasing access to concessional finance, restructuring unsustainable debt, and introduction of innovative instruments such as climate-resilient debt clauses and green bonds. No less important, institutions like the IMF and the World Bank need to evolve from crisis lenders to proactive enables of sustainable development. The time for decisive, collective action is now. The longer the transition is delayed, the more costly and painful it will become. Copyright Business Recorder, 2025
Business Recorder
12 hours ago
- Business Recorder
British FM meets Syrian president in Damascus
DAMASCUS: The UK's top diplomat David Lammy met Syria's leader Ahmed al-Sharaa in Damascus on Saturday, the Syrian presidency said, in his first visit since longtime ruler Bashar al-Assad was overthrown in December. Interim President Sharaa received Lammy alongside Syrian Foreign Minister Asaad al-Shaibani, according to photos of the meeting released by the presidency. The talks addressed 'bilateral ties… and ways of strengthening cooperation, as well as regional and international developments', Sharaa's office said in a statement. The Syrian foreign ministry issued a similar statement following a separate meeting between Lammy and Shaibani. Syria has seen a flurry of diplomatic activity since Islamist-led forces ousted Assad in December after more than 13 years of grinding civil war. IMF team makes first Syria visit since 2009 In May, Syrian Defence Minister Murhaf Abu Qasra met with an official British delegation, the defence ministry said at the time. In April, the UK government announced it was lifting sanctions imposed on Syria's interior and defence ministries under Assad. It also said it was lifting sanctions against various media groups and intelligence agencies, as well as on some sectors of the economy including financial services and energy production. A month earlier, it lifted sanctions on 24 entities including Syria's central bank. Syria's new authorities have welcomed the moves, which came as they seek to rebuild the country and reboot its moribund economy, both ravaged by the conflict and crippling sanctions.
