Karachi, April 30, 2025 — Finance Minister Muhammad Aurangzeb has assured the business community that Pakistan is fully capable of handling the impact of new U.S. tariffs and evolving global economic conditions.
Addressing the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during his visit, Aurangzeb emphasized Pakistan’s proactive engagement with international partners and outlined various ongoing economic reforms.
The finance minister revealed that Pakistan maintains strong diplomatic and trade contacts with the United States. On the sidelines of recent World Bank and IMF Summer Meetings, the Pakistani delegation held several productive sessions with U.S. officials. Furthermore, Prime Minister Shehbaz Sharif has announced plans to send a high-level delegation to Washington to discuss the tariff-related concerns.
Aurangzeb highlighted that Pakistan’s annual exports to the United States stand at approximately $5 billion, while imports hover around $2 billion. The average tariff gap of 3% could be managed through strategic trade in commodities like cotton and soybeans, he explained.
Sharing insights from his recent visit to the U.S., Aurangzeb noted that Pakistan’s economic team conducted over 70 constructive meetings with officials from the IMF, World Bank, Asian Development Bank, and other partners. These interactions, he said, reinforced global confidence in Pakistan’s economic outlook.
The minister underscored key improvements in Pakistan’s economy. Inflation has significantly decreased, allowing for a major 1000 basis-point cut in the policy rate. The current account is expected to remain in surplus, and government expenditures are being tightly controlled.
Aurangzeb reiterated the government’s commitment to making this Pakistan’s final IMF program. “We are implementing deep structural and economic reforms,” he said, emphasizing the importance of long-term sustainability.
On tax reforms, Aurangzeb announced plans to modernize the tax system by using data analytics and reducing human intervention. Simplified tax return forms are being developed to allow easier filing for ordinary citizens, especially the salaried class. He also confirmed that the tax burden on salaried and business segments would not increase further.
The minister noted significant advancements in energy reforms, including reductions in electricity tariffs, and hinted at further relief in the near future. He also confirmed that the government is reviewing tax rate rationalization for the upcoming budget.
In closing, Aurangzeb stressed the importance of private sector participation in economic development. He highlighted the Rekodiq project, expected to generate $2.8 billion annually by 2028, as a major step toward boosting mineral exports and diversifying the economy.