ISLAMABAD: Minister for Finance Muhammad Aurangzeb on Wednesday conceded that Pakistan had failed to present bankable projects to international donors, preventing the full materialisation of pledges made in the aftermath of 2022 flash floods.
Speaking to reporters after addressing the ICAP conference, he said: “The Ministry of Foreign Affairs will take up with India the matter of increased water flow, but we must learn lessons from the past — why were houses and hotels built on the banks of rivers in the first place? Let’s pray that the recent flash floods spared certain parts of Punjab.”
He stressed that Pakistan’s two biggest economic challenges were population growth and climate disasters, calling them major stumbling blocks to achieving the target of a $1 trillion economy.
On international aid, Aurangzeb admitted that donors’ pledges after the 2022 floods remained unfulfilled because Pakistan could not table bankable projects. Asked about a possible damage and need assessment with the World Bank and ADB, he said he had no knowledge of such plans.
On cryptocurrency, the finance minister said permission could be granted within two to three months once a regulatory framework was finalised. All regulators, he noted, had already participated in the first board meeting on the matter.
Aurangzeb also confirmed that he would travel to China with Prime Minister Shehbaz Sharif, where preparations for launching Pakistan’s first Panda bond by the end of 2025 were in progress. He added that trade and tariff negotiations with the United States were underway, with more details expected in the coming weeks.
Addressing the ICAP conference earlier, Aurangzeb said widespread corruption in public sector entities left no option but restructuring. He stressed that tariff rationalisation and liberalisation had been rolled out to encourage competition, moving away from decades of protectionist policies.
Citing his experience in Singapore, he said no economy could turn around without opening up. “It is better to make a decision than to make no decision at all,” he remarked.
On taxation, the minister highlighted simplification measures, noting that the latest return form had reduced 800 fields to just 40 for salaried taxpayers.
He added that Pakistan’s credit rating had improved with upgrades from three international agencies, paving the way for re-entry into global capital markets.
The Panda bond would be launched by year-end, while other international bonds could follow by the end of the fiscal year or next financial year.
