Finance Minister Muhammad Aurangzeb announced on Wednesday that the government is advancing plans to deregulate Pakistan’s sugar and wheat sectors. Speaking to members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he said the state aims to withdraw completely from the entire value chain of these commodities to encourage private sector efficiency and transparency.
“Both sugar and wheat are moving towards deregulation. However, this has to be end-to-end. The government needs to get out of the entire value chain, and that is where we are heading,” Aurangzeb stated.
The minister also revealed that tax policy formulation has been separated from the Federal Board of Revenue (FBR) and transferred to the Finance Division. “The budget for the upcoming fiscal year will be prepared by the tax policy office, not the FBR,” he said, addressing long-standing concerns of the business community regarding policy inconsistencies.
He emphasized that tax reforms are being designed in close consultation with the private sector to ensure predictability and fairness.
Focus on Export-Led Growth
Aurangzeb stressed the government’s shift toward export-led economic growth, asserting that “every single sector has to export” to build competitiveness. “Whether it’s 2%, 5%, or 10%, sectors must contribute to exports,” he added.
He reiterated the government’s commitment to sustainable development and revealed that Prime Minister Shehbaz Sharif recently formed eight new working groups to tackle key industrial and export challenges. “As we go forward, the representation of chambers should also be part of these consultative groups,” he noted.
These groups, established in October 2025 under the Special Investment Facilitation Council (SIFC), include industry experts, government officials, and business representatives to strengthen policymaking.
Tariff Reforms and Industrial Growth
Aurangzeb said that the government aims to reduce tariffs on industrial raw materials and intermediaries to stimulate production and exports. He described the textile sector as the “backbone” of the export base, highlighting recent growth in IT and pharmaceuticals as promising signs of diversification.
Reko Diq and Fiscal Developments
Discussing fiscal matters, the finance minister said that the National Finance Commission (NFC) will soon revisit provincial shares in the federal divisible pool to ensure equitable resource distribution.
He also provided updates on the Reko Diq mining project, saying operations are expected to begin in 2028, with the first export valued at around $2.8 billion. “Reko Diq will prove to be a milestone for the country’s economy,” Aurangzeb said.
Macroeconomic Outlook
Aurangzeb concluded by noting that Pakistan’s improving macroeconomic indicators and favorable geopolitical environment have created “a fantastic opportunity” for the country to accelerate growth and attract foreign investments.
“Macroeconomic stability and geopolitical tailwinds are aligned for Pakistan to move forward confidently,” he said.
