Finance Minister Muhammad Aurangzeb indicated on Wednesday that the State Bank of Pakistan (SBP) may further reduce the interest rate in its upcoming Monetary Policy meeting in November.

Speaking in an interview with Bloomberg during the IMF meeting in Washington, Aurangzeb highlighted that the SBP had already cut the benchmark interest rate by 450 basis points, lowering it to 17.5% from a peak of 22% over the past three consecutive meetings.

He hinted that another reduction might be announced at the next meeting scheduled for November 4.

The finance minister also emphasized the government’s efforts to boost tax revenue, aiming to raise the share of taxes in the economy to 135%. He noted that sectors such as retail and agriculture, which have previously resisted taxation, would be the focus of these efforts. Legislation concerning agricultural taxes is expected to be passed by provincial governments by January, with collections starting in July.

Addressing Pakistan’s debt situation, Aurangzeb mentioned that the country had received a positive response from China regarding its request to extend the maturities of Belt and Road Initiative loans. This comes as Pakistan navigates a period of economic stability, bolstered by a $7 billion loan program from the IMF and the rollover of $16 billion in debt, primarily from China, out of the $26 billion due in the current fiscal year.

The minister also acknowledged the severe strain on households due to rising electricity prices, which have tripled for some and now exceed housing costs for many residents.