In a press briefing on Tuesday, Finance Minister Muhammad Aurangzeb outlined ambitious plans to increase Pakistan’s tax-to-GDP ratio to 13-14 percent within the next four years, while addressing the pressing issue of pensions as a significant liability that requires substantial reforms.

Joined by Information Minister Attaullah Tarar and Law Minister Azam Nazir Tarar, Aurangzeb detailed the government’s strategy to curb pension costs, including potential measures such as raising the retirement age. He stressed the pivotal role of infrastructure development in bolstering the nation’s economy and advocated for immediate tax reforms to achieve economic stability.

Highlighting the imperative for tax and pension reforms, the Finance Minister underscored the importance of collaboration with the private sector to stimulate economic growth and outlined strategies to achieve this goal.

Aurangzeb revealed that the International Monetary Fund (IMF) would dispatch a team to Pakistan later in the month to negotiate a new loan program aimed at fostering international cooperation and positively influencing the country’s financial policies and future prospects.

Regarding recent investment discussions, Aurangzeb hailed the success of the Saudi visit, noting significant progress toward economic objectives. He acknowledged a substantial improvement in foreign exchange reserves following the IMF’s deposit of $1.1 billion with the State Bank of Pakistan.

Addressing fiscal discipline, the Minister emphasized the necessity of reducing non-development expenditures and pledged to work closely with the private sector to drive economic growth. He reiterated the importance of pension cost control for long-term financial stability and hinted at potential collaboration with China through capital market initiatives.

Law Minister Azam Nazir Tarar highlighted that discussions with the IMF would prioritize climate financing and digitalization initiatives. He assured transparency in pension reforms and committed to enacting legal amendments conducive to inclusive governance.