Finance Minister Muhammad Aurangzeb Announces Further Interest Rate Cuts and Lower Electricity Prices Soon

Islamabad:Federal Minister for Finance, Senator Muhammad Aurangzeb, has announced that further reductions in the interest rate will be made soon, along with efforts to reduce electricity prices for the public.

Speaking at an event in Islamabad, the Finance Minister highlighted Pakistan’s economic progress, stating that international financial institutions are recognizing the country’s achievements. He hinted that a third global credit rating agency is expected to acknowledge Pakistan’s economic recovery in the near future.

“Over the past one and a half years, the economy has stabilized. We have already significantly reduced the policy rate, and we will announce another cut very soon,” Aurangzeb stated.

He acknowledged that the 41% increase in national debt is substantial, but assured that as debt repayments continue, the situation will improve. The privatization of state-owned enterprises will proceed rapidly, and steps are being taken to reduce government expenditures.

The minister also noted a major development in the tax system: for the first time, agricultural income has been brought under the tax net. “We have no option but to expand the tax base,” he said, underlining the need for a broader and more inclusive tax system.

Regarding salaried individuals, the Finance Minister affirmed that all possible relief has already been provided within the limited fiscal space. “We cannot impose any additional taxes on the salaried class,” he emphasized.

The announcements come as part of the government’s broader economic reforms aimed at stabilizing the economy, reducing inflation, and improving fiscal management.