KARACHI: Federal Finance Minister Muhammad Aurangzeb has outlined an ambitious road-map for economic stabilization and growth at the Pakistan Banking Summit 2026, signaling the government’s commitment to modernizing the nation’s financial infrastructure while extending targeted relief to businesses and investors.
Speaking at the opening ceremony of the summit, organized by the Pakistan Banks Association in Karachi here on Tuesday, Aurangzeb emphasized that a new medium-term tax policy will be developed through wide stakeholder consultation, moving away from punitive approaches toward a transparent, ability-based system.
The Finance Minister highlighted several positive economic indicators, noting that foreign exchange reserves have reached approximately $18.5 billion, bolstered by the recent issuance of Panda Bonds. He underscored the government’s dual focus on corruption elimination and tax system simplification – key pillars aimed at restoring public confidence in financial institutions.
He cited encouraging developments in capital markets, revealing that 11 initial public offerings were introduced on the Pakistan Stock Exchange in the last fiscal year, with Gen Z investors showing particularly strong engagement.
The government’s response to the 2025 floods also drew praise, with Aurangzeb noting that reconstruction efforts were funded entirely through domestic resources rather than external assistance.
Business-Friendly Tax Reforms
The federal minister claimed that the recent budget measures reflected the administration’s business-friendly stance. “The abolition of super-tax on enterprises worth less than Rs 500 million, combined with construction sector incentives and the removal of all duties on agricultural machinery, are aimed at catalyzing growth in small-to-medium enterprises and critical economic sectors, “ he added.
He further said that the government is simultaneously expanding the tax base by including the retail sector while leveraging technology to minimize human discretion in tax collection – part of a broader modernization initiative rejecting final tax regimes in favor of equitable, capability-based systems.
Digital Finance and Innovation
Minister Aurangzeb said that momentum in remittance channels remains strong, with Roshan Digital Account investments climbing from $180 million to $300 million monthly over the past three months.
“Expanding financial access for SMEs remains a government priority, supported by recent approvals for exchange company operations in emerging fields including artificial intelligence, blockchain, and virtual assets,” he said, calling on commercial banks to strengthen cyber security defenses as the sector embraces digital innovation.
On trade policy, he expressed openness to expanding commerce with international partners and confirmed ongoing National Finance Commission discussions with provincial governments, expressing gratitude for their cooperation.
