In a series of high-level meetings with industry leaders, Federal Finance Minister Senator Muhammad Aurangzeb emphasized that Pakistan’s economic revival demands collective responsibility across all sectors—not just the formal economy and salaried class.
Speaking during a discussion with a delegation from the Pakistan Association of Large Steel Producers (PALSP), led by Patron-in-Chief Abbas Akbar Ali, the finance minister acknowledged the steel industry’s key concerns, including high energy costs, regulatory inconsistencies, and the need for stable policies to support long-term investment.
Aurangzeb reassured the delegation that the government is committed to supporting productive sectors of the economy and would consider their feedback during budget deliberations. He stressed that economic revival in Pakistan cannot rely solely on overburdened sectors but must include contributions from all, especially those operating outside the documented economy.
“The burden of national recovery cannot be placed only on the formal sector and the salaried class,” he said. “We are working on expanding the tax base and reducing dependence on already taxed groups.”
Highlighting the government's broader reform strategy, Aurangzeb stated that Prime Minister Shehbaz Sharif is personally leading regular meetings to ensure effective economic management and equitable growth. “We aim to bring undocumented sectors into the fold with a comprehensive tax policy,” he added.
In another meeting with the All Pakistan Ceramic Tiles Manufacturers Association, the minister praised the sector’s progress in localizing production. Led by Chairman Abdul Rahman Talat, the delegation revealed that the industry’s daily output has reached 560,000 square meters, supported by over PKR 100 billion in investments—60% of which are foreign, largely from China.
They shared that dependency on imported raw materials had dropped from 74% to just 4%, with plans to reduce it to 1% soon. Aurangzeb lauded this shift as a model for economic self-reliance and praised the use of modern technology in local units, especially those in Gujranwala.
Touching on energy reforms, the minister confirmed that economic revival in Pakistan hinges on affordable, reliable, and transparent energy pricing. “Energy sector reform is one of our top priorities,” he said, adding that the government is also streamlining regulations to improve the ease of doing business.
Aurangzeb emphasized that expanding the tax net is essential for financial balance and justice in the economy. “We cannot afford to keep burdening the same segments,” he reiterated, calling for stronger documentation of economic activity.
In a separate review session, the finance ministry also discussed progress on a national initiative for small farmers, aimed at providing collateral-free loans through tech-driven solutions. This initiative—part of the National Subsistence Farmers Support Initiative—seeks to include small farmers in the formal financial system and boost rural development.
Participants from financial institutions, regulators, and development experts presented a new scoring model that prioritizes agricultural indicators, adjusting the weight from 40% to 60% to better reflect farmers’ realities.
Minister Aurangzeb welcomed the recommendations and directed the task force to fast-track implementation. He also called for a parallel model to support livestock and dairy farmers, citing their critical role in the rural economy.
“Our focus must remain on the farmers’ experience,” he said. “We need a digital-first model that ensures transparency, efficiency, and ease of access.”
