Finance Minister Muhammad Aurangzeb has reiterated that the government would not reverse its decision to bring retailers and distributors into the tax net despite threats of country-wide strike, as the country seeks an International Monetary Fund bailout.

“One thing I want to be very clear [about] … This is not going to be taken back,” Aurangzeb said in a televised speech that urged wholesalers, distributors and retailers to contribute to the economy.

The comments follow a nationwide strike by retailers last week to demand withdrawal of the Tajir Dost Scheme and high electricity rates, the latest of the last few months’ protests against the new tariffs, taxes and inflation.

Although Muhammad Sharjeel Goplani, chairman of a group of traders, the All-City Tajir Ittehad Assocation, had threatened an indefinite strike if the demand was not met, no further action has been announced since.

The finance minister said that 43 per cent of sectors in the economy were paying less than 1% tax, curtailing the tax to GDP ratio to as low as 8.8%. He added that the ratio needed to be lifted up to over 13 per cent.

The minister, who is also chairman of the High-Powered Committee on Rightsizing of the Federal Government, also expressed resolve to right-size different ministries and autonomous bodies to bring down the size of the federal government.

He said six ministries have been given two weeks to prepare an implementation plan for rightsizing, keeping in view their employees, resources, properties and litigation matters. “Once the programme is executed, other ministries would be taken for the same process.”

He said that ministries and autonomous bodies were given the opportunity to share their performance and justify what they have contributed to the national economy. He added the government would need to bring legislative changes in the Civil Servant Act 1973 with the help of coalition partners to carry forward the rightsizing process smoothly.