'We have lost our credibility': Pakistan FM Aurangzeb
What's the story
Pakistan's Foreign Minister Muhammad Aurangzeb has acknowledged that the country is facing a credibility crisis, which is obstructing its negotiations with international lenders.
The minister made the remark during a Senate climate change committee meeting chaired by Sherry Rehman.
He also disclosed that the Asian Development Bank (ADB) has committed $500 million to Pakistan and hopes to obtain another $1 billion from the International Monetary Fund (IMF) next week.
Tax reform
Pakistan announces major shift in tax policy
Aurangzeb also announced a major overhaul of Pakistan's tax policy. The Finance Ministry will now handle tax policy, while the Federal Board of Revenue (FBR) will concentrate solely on tax collection.
This change is part of wider structural reforms to attain sustainable and inclusive economic growth.
Speaking at an event organized by the Pakistan Retail Business Council in Islamabad, Aurangzeb admitted the salaried class shoulders a disproportionate tax burden.
Tax equity
FM Aurangzeb calls for fair tax contribution
Aurangzeb stressed that sectors like retail, wholesale, real estate, and agriculture must contribute their fair share to taxes.
He pushed for difficult but necessary measures to create a competitive energy market as part of energy reforms.
Rehman also highlighted that Pakistan needs to bolster its financial strategy to get international support. He said no help will come without a well-defined plan.
Green finance
Pakistan plans to issue 'green panda bonds'
The government is also planning to issue "green panda bonds" in Chinese yuan.
The move is aimed at attracting investment for green projects or assets as Pakistan continues its economic recovery efforts after narrowly avoiding default in 2023 due to IMF intervention.
Aurangzeb expressed confidence earlier this week that Pakistan will be able to meet its revenue goals for the year without further burdening existing taxpayers.
However, he has yet to present a concrete plan in this regard.