Pakistan Can’t Afford Boom-Bust Cycle: Finance Minister Aurangzeb

Pakistan’s Finance Minister, Muhammad Aurangzeb, spoke at a conference in Islamabad and shared important points about the country’s economy. He warned that Pakistan cannot handle another boom-and-bust cycle. A boom-and-bust cycle is when an economy grows very quickly (boom) but then suddenly collapses or slows down (bust), causing instability and problems like unemployment and financial crises. To avoid this, Aurangzeb stressed the need for long-term reforms to ensure stable and fair growth for everyone.

The retail sector creates many jobs and contributes to the economy, but it pays very little in taxes. Aurangzeb said everyone, including retail, wholesale, real estate, and agriculture, must pay their fair share of taxes. He praised provinces for taxing agricultural income but said more needs to be done. The government is using technology to make the tax system more transparent and stop tax evasion. The minister made it clear that no sector can avoid paying taxes anymore, and proper documentation of businesses is essential to ensure everyone pays their dues.

Tough measures are being taken to improve the energy sector and make it more competitive. Reforms are also happening in state-owned companies, with plans to complete restructuring by June this year. Privatization of some companies will continue. Aurangzeb said the private sector will be the main driver of economic growth, and the government will provide consistent policies and a supportive environment for businesses to thrive.

The minister said Pakistan has achieved some stability, with a steady currency, higher foreign reserves, and lower inflation. Interest rates have also dropped, making borrowing cheaper. Pakistan is working to improve its credit rating to attract more international investors. A better rating will help Pakistan access global markets and diversify its funding sources. An advisory committee will be formed to include suggestions from the business community in the next budget.

The retail sector is a big part of Pakistan’s economy and job market. The minister urged retailers to formalize their businesses and contribute to the country’s growth. He emphasized that structural reforms are crucial for Pakistan’s long-term growth and called on all sectors, especially retail, to play their part in building a stronger economy. The government is working to create a fair and transparent system where everyone contributes, and no one gets a free ride.

The conference, organized by the Pakistan Retail Business Council, aimed to encourage innovation and collaboration in the retail industry to help it grow and adapt to changing times.