Pakistan’s Finance Minister, Muhammad Aurangzeb, has reiterated the government’s determination to impose taxes on agriculture and property, asserting that the current system cannot function without these sectors contributing to the tax net.

Speaking on the news program “Spotlight” today, Aurangzeb emphasized the need for provinces to participate in social protection initiatives and contribute to the national revenue pool.

He highlighted that 60% of the federal government’s collected revenue is allocated to the provinces.

Aurangzeb described the current budget as a roadmap for the future, stating that Pakistan cannot sustain a tax-to-GDP ratio of 9.5%. The government aims to increase this ratio to 13%.

He acknowledged public concerns regarding the category of non-filers, stating that it is a unique phenomenon in the world.

Aurangzeb reiterated his previous statement, emphasizing that the government has pushed prices to such a level that non-filers will be forced to reconsider their status. He expressed his intention to eliminate the term “non-filer” from the Pakistani lexicon in the coming years.

Responding to a question regarding the possibility of reduced electricity bills, Aurangzeb acknowledged that it would take time to see results. He highlighted the government’s plan to replace politically appointed individuals on the boards of distribution companies (DISCOs) with professionals from the private sector. He emphasized that the chairmanship of these boards should be entrusted to a private sector individual.

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Aurangzeb explained that the government had attempted to implement this change through a presidential ordinance but faced legal challenges. The bill is currently pending in the Senate and will subsequently be presented to the National Assembly. He acknowledged the time-consuming nature of the legislative process but expressed the government’s desire to have implemented these changes upon assuming office. He stated that nominations for these positions have been received and all preparations are complete.

Aurangzeb stressed the importance of these changes in paving the way for privatization of DISCOs. He also mentioned the government’s efforts to control the gross subsidy provided to industries.

Responding to a question about the digital economy, Aurangzeb emphasized its crucial role in Pakistan’s economic development. He highlighted that the government’s revenue target for the current fiscal year was Rs9.4 trillion, and although they have reached close to this target at Rs9.3 trillion, a significant amount of money, approximately Rs9 trillion, remains outside the formal financial system. He stressed the need for digitization to bring this money back into the economy.

Aurangzeb concluded by announcing that the Prime Minister will soon announce the launch of a digital initiative, with leadership entrusted to a private sector individual.