Finance Minister Muhammad Aurangzeb in a meeting with US Ambassador Donald Blome on Thursday reaffirmed the government’s commitment to implementing comprehensive reforms in taxation, energy, and SOEs.

Aurangzeb emphasised the goal of increasing Pakistan’s tax-to-GDP ratio to 13.5% over the next three years by addressing tax leakages and incorporating previously untaxed sectors into the tax system.

Ambassador Blome praised the government’s efforts to enhance macroeconomic stability and reiterated the United States’ support for strengthening bilateral cooperation.

He highlighted ongoing support for technical and development initiatives, along with a focus on promoting high-quality US investments in Pakistan.

Earlier in the day, the State Bank of Pakistan said in its annual report on the country’s economy that structural impediments are challenges to sustaining macroeconomic stability in Pakistan.

“Falling investment … unfavourable business environment, lack of research and development, and low productivity, alongside climate change risks continue to constrain the economy’s growth potential,” the bank said in a statement.

The central bank has expressed concerns over persistent inefficiencies in the energy sector, which have led to the buildup of circular debt. In its recent report, the SBP stressed the need for comprehensive policy and regulatory reforms to enhance the sector’s efficiency.