ISLAMABAD: Finance Minister Muhammad Aurangzeb has credited strict financial discipline and robust coordination between the federal and provincial governments for achieving a primary surplus, Dawn.com reported.

The minister said unprecedented profits by the State Bank of Pakistan last November, driven by the highest-ever interest rates and record petroleum levy revenue both non-tax sources had helped the country convert its entrenched budget deficits into a fiscal surplus for the first time in at least 24 years.

According to a finance ministry statement, Mr Aurangzeb and his team held a Zoom meeting with representatives of S&P Global Ratings as part of the ongoing Pakistan Sovereign Ratings Review.

`During the session, the finance minister presented a detailed overview of the government`s macroeconomic reform agenda and reaffirmed Pakistan`s commitment to achieving sustainable and inclusive economic growth by enhancing productivity and promoting exports.

He emphasised the continuity of reforms across key sectors, including taxation, energy, state-owned enterprises (SOEs), privatisation, public finance management, rightsizing of government functions, and more active debt management strategies.

The finance minister noted that inflation and the current account deficit had remained on a positive note throughout the year, contributing positively to overall economic stability. `He also highlighted the achievement of surpluses in both the primary balance and the current account as major milestones, underscoring the improving fundamentals of Pakistan`s economy,` the statement read.

`He stated that the country`s external portfolio was well-managed, with foreign exchange reserves projected to reach $14bn by the end of June, supported by upcoming institutional and trade inflows, strong remittances, and easing oil prices, all of which are helping reduce pressure on the external account,` the statement quoted the finance minister as saying.

Aurangzeb pointed to significant institutional reforms, including the signing of a comprehensive National Fiscal Pact, operationalisation of the National Tax Council, and the imposition of agricultural income tax, reflecting a whole-of-government approach and a shared national resolve to improve resource efficiency, broaden the tax base, and ensure long-term inclusive growth.

He said the tax-to-GDP ratio was expected to reach 10.6pc by the end of June, which would mark progress toward the government`s target of raising it to 13pc by the conclusion of the 37-month Extended Fund Facility (EFF) with the International Monetary Fund (IMF). He said the separation of the Tax Policy Office from the Federal Board of Revenue was part of a broader effort to align tax policymaking with economic value principles rather than administrative convenience.

He also shared insights from his recent visit to the United States for the World Bank and IMF Spring Meetings, during which he held over 70 meetings in six days with counterparts, Development Finance Institutions, investment banks, multilateral and bilateral partners.

He conveyed that the feedback received from these stakeholders consistently reflected appreciation and support for recent structural reforms and macroeconomic stability. `At the same time, there was a strong and unified recommendation for Pakistan to stay the course, deepen the reform momentum, and focus on embedding permanence in macroeconomic stability, with international partners expressing readiness to support the country in achieving these objectives, the statement concluded.