ISLAMABAD: Finance Minister Muhammad Aurangzeb has ruled out the signing of an energy debt restructuring agreement with China next week, dismissing reports that suggested a memorandum of understanding (MoU) would be signed during the Chinese prime minister’s upcoming visit. Speaking after a Senate Standing Committee on Finance meeting, the minister clarified that debt re-profiling was a lengthy process, requiring lender and sponsor consent, and that negotiations would take three to four years.
Pakistan seeks to restructure $16 billion owed to Chinese institutions, but no immediate relief is expected. Meanwhile, provinces will start collecting agricultural income tax at new rates from fiscal year 2025-26, as part of broader tax reforms.
Chartered accountant Haroon Khawaja presented recommendations to expand Pakistan’s narrow tax base, proposing the creation of a National Tax Authority to boost tax collection and streamline processes.
