The Minister of Finance, Muhammad Aurengzeb, said on Saturday that the government would ensure that the benefits of reduced inflation would directly reach the common man and the “intermediaries” could not exploit the system.
Pakistan’s main inflation fell to 0.7 percent year -on -year in March 2025, marking the lowest reading since December 1965, according to data published by the Pakistan Statistics Office (PBS) on Thursday.
The decline exceeds both market expectations and the projection of the Ministry of Finance, which had anticipated inflation between 1 percent and 1.5pc for March. The research firm Arif Habib Limited (AHL) confirmed the minimum of 59 years, citing data from the State Bank of Pakistan (SBP).
The monthly inflation rate was 0.9pc, compared to a 0.8pc decrease in prices in February and an increase of 1.7pc in March 2024.
When heading to the business community in the Chamber of Commerce and Industry of Lahore (LCCI) today, the Minister of Finance, Aurengzeb, admitted that the wage class had the tax burden, since the Income Tax was deduced at the source. However, he said that the government intended to offer relief to the salaried segment as well.
He revealed that 24 national entities were intended for privatization, emphasizing the need for reduced human interaction to solve systemic problems.
“If we can increase the relationship imposed to GDP to 13 percent, we can offer a broader relief to several sectors,” he said.
“If our policies did not have an impact on the common man, then it makes no sense,” he said, citing that edible prices went down and that the intermediary could not obtain benefits now.
The deceleration in the inflation rate, measured by the consumer price index (IPC), is mainly driven by lower prices in wheat and its by -products, perishable items such as onions, potatoes and certain pulses and a reduction in electricity loads.
These products have a significant weight in inflation calculations, which even makes minor price changes impressive to reduce the general inflation rate.
The full effect of the electricity rate is expected, announced by Prime Minister Shehbaz Sharif, reflected in April inflation figures.
In contrast, sugar and edible prices of oil are increasing in the domestic market despite their decrease rates worldwide. The government has allowed sugar exports, particularly to Afghanistan, quote the surplus stock as reason.
‘Game changers’
Aurengzeb said that information technology (IT) and mineral sectors will be the changers of the economy for the economy, and added that the prime minister led the economy and that the country would see the best results soon.
The finance minister added that only nickel became an important export driver for Singapore with US $ 22 billion of export shares, citing that copper has the potential to produce similar dividends for Pakistan.
He continued that the global interest in the country’s mineral sector and IT potential were growing, and the government focused on eliminating all barriers to attract and facilitate local and foreign investment in these key sectors.
“We are here to serve people. I am visiting cameras to listen, understand and solve problems from the business community. The legitimate demands of the cameras will be accepted,” he said.
“We talk about economic stability. It is very important that if we cannot return the money of our country’s investors in time, how can we move forward? Inflation inflation is essential for economic stability. The interest rate was 22 %, today it is at 12 percent.”
The minister said that industrial growth was only possible if financing costs, energy tariffs were reduced and better fiscal policies were implemented.
The minister added that obstacles to the repatriation of profits for foreign investors were addressed, which increased their confidence in the market.
