ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb asserted that Pakistan’s economy was on the path to progress, attributing a decrease in inflation to government policies. He emphasised the necessity of increasing tax revenue.
Aurangzeb stated that Prime Minister Shehbaz Sharif was tirelessly working for the development of Pakistan and hailed approval of the International Monetary Fund (IMF) program under his leadership.
He highlighted decrease in inflation to single digits, rise in exports by 29% and growth in the IT sector’s exports.
He noted that that the country’s foreign exchange reserves were at an all-time high and a 4.5% reduction in the policy rate had occurred due to lower inflation.
He commented on the stock market, expressing optimism about it breaking new boundaries, stating that macroeconomic stability had laid the foundation for a strong economy.
Finance minister described macroeconomic stability not only a goal but a pathway, stressing that investor confidence was key to economic strength while acknowledging the positive role of the previous caretaker government in it.
Aurangzeb indicated that economic stability was on the horizon and expressed hope that exchange and policy rates would meet expectations.
He urged the private sector to lead the country’s growth and announced to bring experts from abroad to assist in this effort.
He also revealed that 723,000 new filers have entered the tax net this year, doubling the number from the previous year. The total number of tax filers has now reached 3.2 million, up from 1.6 million.
He warned that non-filers would face challenges in purchasing vehicles and properties and would encounter difficulties with bank transactions.
Finance minister mentioned that around 300,00 were wholesalers and only 25 pc registered in sales tax and 14 pc in retailers sales tax.
Production units could only sell their products to registered wholesalers and non-registered couldn’t access their utility services. Minister stated that government was taking measures to control smuggling.
He disclosed the introduction of reforms in the Federal Board of Revenue (FBR) and clarified that FBR wasn’t mandated for audit and 2,000 charter accountants were being recruited for said purpose.
Aurangzeb further explained that there will be strict accountability for tax collectors and audit capacity of FBR would be increased. He suggested the chief ministers of four ministers to focus on price controlling committees and ensure implementation of directives.
The minister outlined plans to eliminate redundancies in government ministries and departments.
He stated that reforms will be implemented, including the closure of two federal ministries and the merging of another. He also noted that 150,000 vacant positions would be abolished.
Aurangzeb further explained that there will be strict accountability for tax collectors, with no actions against taxpayers without public hearings.
He insisted on the need for fundamental changes in the economic structure and the introduction of new methodologies to ensure the IMF program was the last loan of its kind.
Finance minister acknowledged that while these measures may cause short-term difficulties but they were essential for sustainable growth.
He warned that failure to make tough decisions now could result in future burdens on the salaried class.
