No use if benefits of reduced inflation not reaching common man: Aurangzeb

LAHORE: Federal Finance Minister Senator Muhammad Aurangzeb has said the government’s main objective is to benefit the common man but there is no use of reduced inflation figures if the common man is not benefitting. He identified the Information Technology (IT) and mineral sectors as key drivers for Pakistan’s economic transformation, describing them as potential game-changers.

Speaking at the Lahore Chamber of Commerce and Industry (LCCI), he stated inflation was coming down and the interest rate had gone down from 22 percent to 12 percent. “We are committed to ensuring that the benefits of reduced inflation reach the common man. If the benefits of reduced inflation figures don’t reach the common man, then it is of no use. Inflation has to go down for financial stability. We are looking at prices of edibles every week. But the prices here are going up despite slash in global prices. We will try to bring down the prices with the help of provincial governments and local administrations. Middlemen will not be allowed to exploit the system,” he added.

The finance minister said that the government, under Prime Minister Shehbaz Sharif’s leadership, was pursuing a focused and goal-oriented economic strategy, with visible results expected in the near future.

Citing a global example, Aurangzeb noted that nickel alone accounts for $22 billion of Singapore’s exports. He highlighted copper as a comparable opportunity for Pakistan, given the growing international interest in the country’s mineral wealth and untapped IT potential.

“The government is working to remove all bottlenecks hindering local and foreign investment in these key sectors,” he said, assuring the business community that their concerns are being actively addressed. “We are public servants, and I am here to listen, understand, and help resolve your issues.”

He further stressed that sustainable industrial growth depends on reducing financing costs, lowering power tariffs and reforming the taxation framework.

Aurangzeb also shared that longstanding issues around profit repatriation for foreign investors have been resolved, bolstering international confidence in Pakistan’s economy.

On the subject of taxation, the finance minister acknowledged the burden on the salaried class due to source-based income tax deductions. “We are working on providing relief to this segment,” he said, revealing that 24 state-owned entities have been marked for privatisation to improve efficiency and reduce fiscal pressure.

He also highlighted the importance of minimizing human interaction in government processes to eliminate systemic inefficiencies. “If we can raise the tax-to-GDP ratio to 13 per cent, we will be in a position to offer broader relief across sectors,” he noted.

LCCI President Mian Abuzar Shad lauded the government’s recent economic measures, including efforts to curb inflation and reduce interest rates. He commended the launch of the “Uraan Pakistan” programme, aimed at accelerating economic growth, increasing exports to $60 billion, attracting $10 billion in annual private investment and creating one million jobs per year.

He also praised the role of Special Investment Facilitation Council (SIFC) in fostering investor confidence and facilitating a conducive business environment.

During the question & answer session, the finance minister said the visa issue was discussed whenever the prime minister visited abroad, asserting that this was being resolved on a priority basis.

Aurangzeb further stated that the government would continue to consult with the private sector, which played a key role in running any country. As per the prime minister’s direction, he said a committee had been formed which was working on GSP Plus.