Karachi: Federal Minister for Finance and Revenue, Muhammad Aurangzeb, emphasized the necessity of achieving macroeconomic stability prior to pursuing growth-oriented measures during his address at the Karachi Chamber of Commerce and Industry (KCCI). He noted that previous attempts to stimulate growth without ensuring economic stability led to recurring balance of payment issues.

According to Karachi Chamber of Commerce and Industry, Minister Aurangzeb articulated the government's focus on resolving structural economic issues and avoiding repetitive crises. He underscored that sustainable growth could only be pursued with sufficient fiscal space, which should be driven by an export-led strategy. The minister's visit also included discussions on various challenges and strategies involving other government officials and business leaders.

The meeting highlighted the government's current tax strategies, emphasizing the need to extend the tax base to unburden the heavily taxed sectors, including the business community and salaried individuals. The minister acknowledged the need for fair taxation across all sectors, including agriculture and real estate, to alleviate pressures on existing taxpayers.

Minister Aurangzeb also addressed the recent decision by the State Bank to lower interest rates by 1 percent, describing it as a positive step towards supporting economic activities without risking inflation control. He discussed the government's approach to ensure competitive energy tariffs, which are essential for the business community but are limited by available fiscal space.

Additionally, the dialogue covered the government's commitment to improving export capacities, advising the private sector to aim for higher agricultural and IT export targets. The Minister reassured the business leaders of the government's efforts to enhance lending to the private sector, especially to farmers and SMEs, through more flexible credit arrangements.

The finance minister's remarks at the KCCI underscored a comprehensive approach to tackling economic challenges, aiming to create a conducive environment for business growth and sustainable economic development.