Finance Minister Muhammad Aurangzeb expressed optimism about the government’s efforts to completely eliminate the concept of “non-filers.”
Aurangzeb announced that Pakistan’s economy is improving significantly due to government initiatives, with inflation decreasing from 38% to 12% and foreign exchange reserves rising to $9 billion.
During a media briefing in Islamabad, Aurangzeb highlighted the importance of macroeconomic stability for the country’s overall economic health.
He mentioned positive developments such as a $1 billion loan approval from the World Bank for the Dasu Dam project and a $400 million loan from the International Finance Corporation (IFC) for PTCL, expected in the next fiscal year.
Aurangzeb noted that the Federal Board of Revenue (FBR) has collected Rs9.3 trillion in taxes, marking a 30% growth.
He emphasized the need to maintain macroeconomic stability, warning that while micro-adjustments are possible, the absence of macroeconomic stability would lead to serious challenges.
Outlining three key objectives for the budget, he aimed to increase the tax-to-GDP ratio to 13% within three years, implement reforms in the LNG, power, and petroleum sectors, and eliminate system leakages estimated at Rs. 10 trillion.
Finance Minister Aurangzeb Highlights Freelancers’ $3.5 Billion Export Contribution
Aurangzeb discussed ongoing efforts to digitize the FBR, aiming to reduce human intervention and curb corruption.
He criticized the idea of “non-filers,” asserting that government measures will eliminate this classification. He cited the recent registration of 42,000 retailers, a move to broaden the tax base, with taxes on retailers set to begin on July 1st.
Addressing government spending, Aurangzeb noted that ministers have declined salaries and are covering their own utility bills as a symbolic gesture. He mentioned the reduction in the Public Sector Development Program (PSDP) to control public expenditures and the inclusion of pensions in the budget, a decision by the Economic Coordination Committee (ECC).
The Finance Minister expressed confidence in the government’s ability to manage the economy, stating that companies experiencing losses will not be taxed.