Reforming SOEs and Privatization is the Right Thing, says Finance Minister

Finance Minister Muhammad Aurangzeb emphasized the government’s dedication to economic reforms at the Pakistan Banking Summit 2025 in Karachi. He pointed out the urgent need to restructure state-owned enterprises (SOEs) to reduce the Rs1 trillion in losses they currently incur. Aurangzeb stressed that reforming SOEs and pushing for privatization is essential for the country’s economic health.

He highlighted the government’s goal of sustainable and inclusive growth, aiming for export-led development beyond the traditional sectors of textiles, IT, and agriculture. Aurangzeb sees minerals as a potential game-changer by 2028, urging all sectors to boost exports.

On tax matters, he noted the imbalance between certain sectors’ GDP contributions and their tax payments, advocating for a broader and deeper tax base. The government plans to address tax compliance and leakages to ease the burden on overtaxed sectors. Aurangzeb also mentioned the arrival of an IMF mission to discuss the Climate Resiliency Fund and upcoming formal talks on the Extended Fund Facility. Finally, he spoke about cryptocurrency regulations, leaving the matter to the central bank but suggesting an open-minded approach.