Finance Minister Aurangzeb suggests potential decrease in interest rates due to reduced inflation rates.
In August 2025, Finance Minister Muhammad Aurangzeb shared insights into Pakistan's economic future, addressing policy rate, privatization, and other crucial aspects.
Policy Rate
Finance Minister Aurangzeb has indicated a possibility of further reduction in Pakistan's policy rate, which currently stands at 11%. He expressed personal optimism for the rate to move downward later in the calendar year, citing improvements in average and core inflation as justification. However, he emphasized that the final decision lies with the State Bank of Pakistan (SBP) and its Monetary Policy Committee.
The central bank left the rate unchanged at 11% in July 2025, despite market expectations of a cut, due to concerns about the inflation outlook related to rising energy prices. The next policy meeting is scheduled for September 15, 2025.
Privatization Plans
No explicit privatization policy details have been given by the finance minister in his recent public statements. His comments have focused primarily on monetary policy, economic stability, and the role of capital markets. He highlighted the need for the corporate sector’s greater engagement and encouraging capital market development, including shifting debt capital to the Pakistan Stock Exchange for efficiency.
Electricity Tariffs
No recent statements by Finance Minister Aurangzeb about changes or plans regarding electricity tariffs have been reported.
Other Developments
- The State Bank of Pakistan has announced that the next policy rate announcement is scheduled for September 15, according to its calendar.
- The number of new company registrations has risen by 250,000, as mentioned by the finance minister.
- Loans to the private sector have increased by 38%, according to the finance minister.
- The stock exchange has seen a 60% surge, according to the finance minister.
- Ongoing reforms in tax administration are mentioned by the finance minister.
- Reduced electricity tariffs and expected improvements in energy costs are pointed out by the finance minister.
In a separate note, the finance minister extended Independence Day greetings, emphasizing the sacrifices behind Pakistan's identity and urging unity in working towards a prosperous future. The statements were based on a decline in both average and core inflation.
[1] Reuters. (2025, August 1). Pakistan finance minister says plans to issue Panda Bonds by year-end. Retrieved from https://www.reuters.com/business/finance/pakistan-finance-minister-says-plans-issue-panda-bonds-year-end-2025-08-01/
[2] Reuters. (2025, August 1). Pakistan finance minister says agreements with China are in progress. Retrieved from https://www.reuters.com/world/asia-pacific/pakistan-finance-minister-says-agreements-china-are-progress-2025-08-01/
[3] Reuters. (2025, August 1). Pakistan finance minister says privatisation of state-owned enterprises is expected to accelerate. Retrieved from https://www.reuters.com/world/asia-pacific/pakistan-finance-minister-says-privatisation-state-owned-enterprises-expected-2025-08-01/
[4] Reuters. (2025, August 1). Pakistan finance minister says federal government has begun a right-sizing process for 45 ministries and departments. Retrieved from https://www.reuters.com/world/asia-pacific/pakistan-finance-minister-says-federal-government-has-begun-right-sizing-process-45-ministries-and-departments-2025-08-01/
[5] Reuters. (2025, August 1). Pakistan finance minister says government has paid one trillion rupees in debt servicing over the past year. Retrieved from https://www.reuters.com/world/asia-pacific/pakistan-finance-minister-says-government-has-paid-one-trillion-rupees-debt-servicing-over-past-year-2025-08-01/
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