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Finance Minister Signals Further Cuts in Interest Rates, Cheaper Electricity Ahead
Finance Minister Muhammad Aurangzeb signals further cuts in interest rates & electricity prices, citing strong economic recovery & improved investor confidence.
ND
by News Desk
2025-08-13
Finance Minister Signals Further Cuts in Interest Rates, Cheaper Electricity Ahead

Federal Finance Minister Senator Muhammad Aurangzeb has hinted at additional reductions in the policy rate and electricity prices, highlighting Pakistan’s improving economic indicators and growing investor confidence.

Speaking at a ceremony hosted by the Rawalpindi Chamber of Commerce, Aurangzeb noted that international financial institutions have acknowledged Pakistan’s recent economic progress, with a third global rating expected to further validate the country’s achievements.

“The economy has stabilized over the past one and a half years,” the minister said. “We have already significantly reduced the policy rate, and there is room for more cuts, which will be announced soon.”

Aurangzeb revealed that loans to the Small and Medium Enterprises (SME) sector have surged by 41%, a sign of increasing business activity. He assured that the privatization of state-owned enterprises would proceed swiftly, alongside measures to reduce government spending.

Highlighting tax reforms, the minister said agricultural income has been brought into the tax system for the first time, stressing the need to expand the tax net without overburdening salaried workers. “We have provided relief to salaried individuals within our fiscal capacity, but we cannot impose additional taxes on them,” he stated.

The finance chief also announced plans to issue Panda Bonds by the end of this year and strengthen economic cooperation with China. He cited recent Gallup survey results showing increased business confidence, expressing optimism for further improvement in the coming months.

“Our aim is to create a business-friendly environment where the private sector drives the economy,” Aurangzeb emphasized. “Under the Prime Minister’s leadership, we are engaging with all chambers across the country through the SIFC, listening to legitimate business concerns and resolving them.”

He added that electricity tariffs have already been reduced and further improvements are expected, offering relief to industries and households alike.
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