Senator Muhammad Aurangzeb, the Minister for Finance and Revenue, reiterated the government's dedication to implementing structural reforms to drive long-term economic progress and stability. Speaking at the 'National workshop on transitioning to define contribution pension schemes' organized by the Security and Exchange Commission of Pakistan (SECP), Aurangzeb highlighted the government's commitment to reforming taxation, energy, and state-owned enterprises (SOEs).

One of the key reformative initiatives introduced this year is aimed at restructuring the country's tariff system to enhance competitiveness. This involves gradually dismantling trade barriers that have impeded industrial growth for a long time.

These measures are expected to propel domestic industries forward and bolster the export sector's global competitiveness. Additionally, the government has implemented various strategies to address public finance challenges, particularly focusing on reducing debt servicing through fiscal measures alongside policy rate adjustments.

Aurangzeb emphasized the importance of liability management in creating fiscal space, stating that effective management will secure funding for critical sectors requiring targeted investment. This approach is crucial for sustainable development and economic growth.

The Minister underscored the significance of pension reform as part of the government's broader fiscal strategy. He highlighted the transition to a defined contribution scheme for new entrants in the federal government and civil service, emphasizing the need to address unfunded liabilities and curb escalating pension costs.

In the Federal Budget for the Fiscal Year 2025-26, the government has proposed a 7% increase in pensions to align with inflation trends and protect purchasing power. Additionally, a progressive taxation measure has been recommended, including a 5% tax on annual pension income exceeding Rs10 million.

Aurangzeb stressed the importance of learning from provincial governments' experiences to adopt a uniform strategy and ensure equitable distribution of resources. He also addressed ongoing discussions on tariffs with the US, highlighting positive progress and enhanced economic cooperation between the two countries.

Amidst prevailing geopolitical tensions, the Minister emphasized the need for proactive risk management to safeguard economic and financial stability. He assured that the government remains prepared for any eventualities and is focused on maintaining strategic reserves and monitoring pricing trends across asset classes.