Finance Minister Muhammad Aurangzeb has emphasized the urgent need to bring the undocumented economy into the tax system, stating that the country can no longer sustain those who evade taxation.
“The formal sector is paying taxes. This is not sustainable, and the only way we are going to bring in sustainability is if other segments, including agriculture, retail and wholesale, and real estate, step up,” he said at the Retail Reimagined: Innovate, Collaborate & Thrive conference organized by the Pakistan Retail Business Council in Islamabad.
He pointed out that the retail sector accounts for 19% of the country’s GDP but contributes only 1% to the treasury. “We cannot continue to go back to the same for more. The manufacturing industry, to a certain extent the services industry and the salaried class are carrying a disproportionate burden,” he said.
Aurangzeb stressed that documenting the parallel economy is essential, reiterating that Pakistan “cannot afford that people want to take a free ride and don’t want to come into the tax net.”
He also highlighted improvements in macroeconomic indicators, including reduced inflation, lower policy rates, currency stability, and rising foreign exchange reserves. The government, he said, aims to restore Pakistan’s credibility as a “bankable brand” and avoid another boom-and-bust cycle.
Regarding structural reforms, he reaffirmed the government’s commitment to privatizing Pakistan International Airlines (PIA), stating, “The privatisation process of PIA is getting to be relaunched, but we are very determined to take this forward.
