ISLAMABAD – Finance Minister Muhammad Aurangzeb on Wednesday said that the interest rate is likely to decrease before the end of the year.
Speaking at the Islamabad Chamber of Commerce, he also promised steps to lower energy costs. Aurangzeb noted that, for the first time, agricultural income has been brought under the tax system.
The minister highlighted progress in the business sector. He said loans for Small and Medium Enterprises (SMEs) have risen by 41 percent, which he called a significant improvement.
Aurangzeb also spoke about a recent trade agreement with the United States. Under the deal, tariffs have been reduced from 29 percent to 19 percent. He urged exporters to take advantage of what he described as a “regionally competitive tariff.”
On tax policy, the finance minister stressed that the salaried class cannot bear more pressure. He said the government must broaden the tax net to increase revenue without overburdening workers.
Aurangzeb mentioned that Pakistan reduced its debt servicing by Rs1 trillion in the past year. He expressed hope that the figure will drop by more than Rs1 trillion this year as well.
He also revealed that the government plans to issue Panda Bonds by the end of 2025, aiming to diversify funding sources and strengthen foreign reserves.
Aurangzeb’s remarks come as businesses and investors watch for signs of a shift in monetary policy. A reduction in the policy rate could help boost economic activity, support borrowing, and encourage investment.
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