ISLAMABAD (Dunya News) - Finance Minister Muhammad Aurangzeb has said that Pakistan managed the situation in a better way despite the ongoing crisis in the Middle East.
Addressing a high-level panel discussion on Pakistan’s economy at Harvard University, the finance minister termed the Middle East conflict a major global supply shock for the world economy.
He said Pakistan ensured continuity in energy supply, while after initial subsidies, full transfer of energy prices and targeted subsidies are being maintained.
He added that Pakistan handled the crisis in a more stable manner.
Muhammad Aurangzeb said that Eurobond repayment remained a “non-event,” reflecting confidence in external payments.
He noted a record increase in transit traffic at Karachi Port, while Roshan Digital Account recorded historic remittances in March.
However, he stressed that remittances are not a sustainable solution and exports need greater focus.
He further said that the real challenge is implementation of reforms, adding that efforts are underway to improve the tax system and increase the tax-to-GDP ratio.
He said digitization and automation in the FBR are ongoing, while subsidies for industries must be phased out to adopt a competitive model.
The finance minister said tariff reforms and global market integration are being pursued. He added that solar energy capacity in the country has reached 8,000 megawatts, with further expansion in renewable energy targeted.
He also said agricultural income tax legislation has been completed in all four provinces, and 28 state-owned enterprises have been referred to the Privatization Commission.
He highlighted population growth and climate change as major challenges, adding that improving the business environment remains a government priority.