During a recent session of the National Assembly, Finance Minister Senator Muhammad Aurangzeb updated the house on the government’s efforts to curb illegal financial practices, particularly hawala and hundi transactions. Speaker Sardar Ayaz Sadiq presided over the session.
Senator Aurangzeb outlined the continuation of the crackdown launched by the caretaker government in 2023 to combat illegal remittances. This policy, carried forward by the current administration with the State Bank of Pakistan (SBP), aims to streamline exchange companies under unified regulations.
As part of the initiative, the SBP raised capital requirements for exchange companies to ensure that only authorized businesses operate. Ten banks were also instructed to establish exchange counters, which has significantly reduced hawala and hundi transactions.
As a result, remittances are now coming through formal channels. For FY24, Pakistan received $30.02 billion in remittances, and this figure is expected to rise to between $35 billion and $36 billion in FY25 due to the government’s facilitation measures.
The finance minister also addressed concerns over pay raises for federal government employees, confirming that no significant salary increases are planned for the next fiscal year.
He also responded to queries about the digitalisation of Pakistan’s tax system, underlining that reforms within the Federal Board of Revenue (FBR) aim to simplify processes and restore public trust.
The consultancy firm McKinsey, selected through a transparent process and funded by the Melinda Gates Foundation, will oversee the tax digitalisation effort, working alongside Nadra and PRAL.
In other discussions, Commerce Minister Jam Kamal provided details on Pakistan’s sugar imports, which amounted to 3,140 metric tons from March 2024 to January 2025, costing over $3 million. He also revealed that Pakistan imported 50,000 tons of sugar from India.
Additionally, the Ministry of Finance reported that Pakistan’s foreign debt stood at $126.14 billion as of June 2023, with $11.48 billion repaid in FY24.
