Pakistan’s Finance Minister and Senator Muhammad Aurangzeb has announced that electricity tariffs are set to be reduced under the leadership of Prime Minister Shehbaz Sharif. An official announcement regarding this relief initiative is expected soon. The government aims to boost the manufacturing sector and enhance exports by lowering power costs, making local industries more competitive in the global market.
Speaking to Bloomberg during the Boao Forum in China, Muhammad Aurangzeb highlighted Pakistan’s economic strategy, emphasizing policies focused on export growth and financial stability. The upcoming federal budget will introduce tax reforms, broadening the tax base by including the real estate, retail, and agriculture sectors. This expansion aims to ease the tax burden on the manufacturing sector, which currently contributes the largest share of tax revenues.
Addressing inflation, Aurangzeb expressed confidence in the economic outlook, stating that both overall and core inflation rates are under close monitoring. He hinted at a potential interest rate reduction within the year, which would create a more favorable environment for economic growth.
In a strategic financial move, Pakistan plans to issue its first-ever Chinese Yuan-denominated bond this year, valued between $200 million to $250 million. While the bond’s size is modest, its primary goal is to diversify funding sources, particularly for climate resilience projects.Muhammad Aurangzeb emphasized that Pakistan seeks to reduce dependence on traditional financial markets in the U.S., Europe, and Islamic Sukuk, while tapping into the world’s second-largest capital market—China.