Pakistan’s Finance minister vows no tax exemptions, eyes swift resolution of US tariff issue

Federal Finance Minister Muhammad Aurangzeb has said that the issue of U.S. tariffs will be resolved smoothly, while global financial institutions and friendly countries have praised Pakistan’s economic stability during meetings held at the Harvard Conference in the United States.

Speaking to reporters, he asserted that no sector will be granted exemptions — every segment of the economy will be taxed. He also announced that the tax return process for salaried taxpayers will be simplified to encourage voluntary compliance.

Muhammad Aurangzeb noted that Pakistan’s automobile production is showing signs of recovery, and for the first time, the country’s furniture sector has successfully exported goods to Saudi Arabia. Highlighting potential economic breakthroughs, he said the Reko Diq project could yield $2.8 billion annually, calling it a possible game-changer for the national economy.

Meanwhile, the acting president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Fayyaz Magoon urged the government to cut interest rates to ease the cost of doing business.

He cited fake invoicing as one of the biggest challenges and called for the reinstatement of the fixed tax regime while addressing the burden of additional taxes. He also raised concerns over commercial importers using industrial licenses to bring in raw materials, demanding that tax rates for both industrial and commercial sectors be made uniform to ensure fair competition.

Aurangzeb reaffirmed the government’s commitment to broadening the tax net and strengthening the economy through structural reforms, stressing that every sector must contribute its fair share to support sustainable growth.