Federal Finance Minister Muhammad Aurangzeb has outlined a series of measures aimed at bolstering Pakistan’s economy, including tax reforms, streamlining government operations, and securing international financial support.

Addressing a press conference in Islamabad, Aurangzeb emphasized the importance of a “fair” tax system, stating that while the government is committed to increasing tax revenue, it will also focus on providing essential services to the public. He highlighted the introduction of a “trader-friendly” scheme to simplify taxation for businesses and expressed his commitment to minimizing the tax burden on lower-income earners.

The minister also addressed concerns regarding the use of data collected through digitalization for tax purposes. He acknowledged that while the government has access to detailed information on citizens’ lifestyles, including financial transactions, there are concerns about potential misuse and harassment.

However, he assured that safeguards are in place to prevent such abuses and that the data will be used primarily for tax collection and enforcement.

Read more: No option but to tax agriculture and property: Aurangzeb

Aurangzeb further revealed that Pakistan has received assurances of support from China regarding its ongoing negotiations with the International Monetary Fund (IMF). He stated that China has commended Pakistan’s efforts to secure an IMF package and will actively support its approval by the IMF Executive Board.

Read more: Finance Minister Aurangzeb in Beijing to seek debt relief, say sources

The minister also highlighted the importance of maintaining strong relationships with both China and the United States, emphasizing that Pakistan needs to engage with both blocs to ensure its economic progress.

He stressed the need for a “road to market” strategy to attract foreign investment and boost exports, which he believes are crucial for achieving long-term economic stability.

Read more: Finance Minister Aurangzeb in Beijing to seek debt relief, say sources

Aurangzeb’s remarks come as Pakistan faces a severe economic crisis, with high inflation and a dwindling foreign exchange reserve. The government is seeking to secure an IMF bailout package to avert a potential default.