RECORDER REPORT
KARACHI: Finance Minister Muhammad Aurangzeb on Monday underscored the need for unlocking Pakistan’s capital market potential as a driver of long-term, sustainable growth, while also reaffirming the government’s commitment to tackling circular debt and deepening engagement with international lenders.
Addressing a consultative workshop titled “Unlocking Capital Market Potential for Banks” organized by the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Banks Association (PBA), Aurangzeb proposed the establishment of a Capital Market Development Council to streamline capital-related affairs. He stressed that working capital must not remain confined to banks alone but should be broadened through capital markets to support wider macroeconomic stability.
The minister also announced that, beginning with the next financial year 2026, tax policy would be formulated by the Finance Ministry instead of the Federal Board of Revenue (FBR). “The government has already unveiled its tariff policy, and tariff-related reforms are part of our homegrown agenda. What matters now is how we move from stability to sustainable growth,” he said.
Aurangzeb praised ongoing reforms by the State Bank of Pakistan (SBP) and highlighted the central role of the private sector in driving economic development. He said Pakistan was on the right trajectory and reiterated his vision that by 2047, the country could achieve developed economy status—provided it tackled existential challenges such as climate change and rapid population growth.
Later, speaking to the media, the finance minister noted that Pakistan’s anti-money laundering laws were gold-standard regulations that had enabled the country to exit the Financial Action Task Force’s (FATF) grey list. “These same laws will ensure we stay out of the grey list,” he asserted. He also confirmed that an International Monetary Fund (IMF) team would soon visit Pakistan under the 37-month program, with regular consultations ongoing.
On monetary matters, Aurangzeb clarified that the government had no role in interest rate decisions, which remain the exclusive domain of the State Bank, and stressed that the exchange rate would continue to be market-determined.
The minister also provided updates on the energy sector, saying that the power sector’s circular debt was gradually declining, three distribution companies were earmarked for privatization, and measures were being devised to resolve gas sector arrears.
Commenting on the impact of heavy rains in Khyber Pakhtunkhwa, Aurangzeb said the immediate priority was relief and rehabilitation of affected communities, adding that it was too early to estimate financial losses. The session was also attended by Governor State Bank Jameel Ahmed, Chairperson PSX Dr. Shamshad Akhtar, SECP Chairman Akif Saeed, former SECP chief Farrukh Sabzwari, PSX CEO, as well as presidents and CEOs of leading banks and financial institutions.
