Finance Minister Muhammad Aurangzeb stated at a news conference on Tuesday that while Pakistan’s tax-to-GDP ratio would rise to 13–14% in the next four years, pensions continue to be a “big liability” and significant measures are required to reduce this load.
In a discussion with reporters, Aurangzeb stated that the federal government will take action to limit pension expenditures. He made a passing reference to raising the retirement age as a first step. He urged swift tax adjustments and underlined how important infrastructure development is to strengthening the national economy.
He detailed plans to strengthen the economy with the assistance of the private sector and underlined the necessity of tax and pension changes.
The International Monetary Fund (IMF) will send a team to Pakistan this month, according to the Finance Minister, to negotiate a new loan program that would promote global collaboration and have a favorable effect on the nation’s financial policies and prospects for the future.
Aurangzeb declared the recent visit by Saudi Arabia to be a success in terms of investment discussions. He noted a significant increase in foreign exchange reserves following the IMF’s $1.1 billion deposit with the State Bank of Pakistan and stated that economic goals are moving in the correct way.
The Minister emphasized the necessity of cutting back on non-development spending while discussing budgetary restraint. He made a commitment to work with the private sector to promote economic expansion and stressed the significance of keeping pension expenses under control in order to maintain long-term financial stability.
