In a high-stakes post-budget interview, Pakistan’s Finance Minister Muhammad Aurangzeb struck a confident tone, asserting that the recently unveiled federal budget has received “no serious objections”—a rare claim in the country’s politically divided landscape.
Speaking to a private TV channel, the finance chief defended the government’s fiscal decisions while acknowledging the harsh economic realities facing the common citizen.
“This is the first budget in years that hasn’t come under fire. It’s balanced, reform-driven, and focused on sustainable growth,” he claimed.
Aurangzeb stressed that economic reforms in Pakistan are no longer a matter of choice, but of survival. He outlined a five-year economic roadmap aimed at long-term fiscal sustainability, industrial revival, and digital transformation of tax systems.
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“We have to begin somewhere, and yes, tough decisions are part of the journey. But reforms are the only way to move toward economic growth,” he said, reaffirming the government’s commitment.
Tax reforms & enforcement
The finance minister made it clear that without collaboration with provinces, tax reforms and enforcement efforts cannot succeed. He said over 470,000 retailers were registered last year, a step forward in broadening the tax net.
He further explained that digital invoicing, track-and-trace systems, and stricter enforcement are being implemented to minimize revenue leakages. “There is no other option left for us except enforcement,” he stated bluntly.
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Aurangzeb also addressed a recurring concern about rising fuel prices, explaining the introduction of a carbon levy. “The levy is directly linked to climate goals. We must cut back on fossil fuel usage to combat pollution and align with global environmental standards—this is also part of the IMF-agreed reform agenda.”
Relief for salaried class—but minimum wage unchanged
While defending the budget’s treatment of middle-income earners, Aurangzeb claimed that the salaried class has been given as much relief as possible. However, eyebrows were raised when he sidestepped a pointed question about the adequacy of the Rs. 37,000 monthly minimum wage.
When asked by anchor Munizae Jahangir whether a single person could survive on Rs. 37,000 in today’s inflation-ridden economy, Aurangzeb offered no direct answer. Instead, he noted, “These figures are internationally verified.” On further probing, he confirmed only that the minimum wage will remain at Rs. 37,000.
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Climate change and growth challenges
The minister also touched upon climate change and population growth, calling them Pakistan’s two largest looming threats. He said that the government is allocating funds for water reservoirs and environmental protection measures.
In terms of industrial policy, he noted that tariffs have been lowered to help boost local industry and exports, while also suggesting that revenue growth will be gradual but consistent.
“If we truly want progress, economic reforms in Pakistan must become a continuous process—not a one-time fix,” he concluded.
