Finance Minister Muhammad Aurangzeb has asserted that Pakistan’s economy is showing significant improvement due to government initiatives, with inflation decreasing from 38% to 12% and foreign exchange reserves reaching $9 billion. He expressed confidence that the government’s efforts will eliminate the concept of “non-filers” altogether.
Speaking to the media in Islamabad, Aurangzeb highlighted the importance of macroeconomic stability, emphasizing that it is crucial for the country’s overall economic well-being.
He pointed to positive developments, including a $1 billion loan approval from the World Bank for the Dasu Dam project and a $400 million loan from the International Finance Corporation (IFC) for PTCL, which will be received in the next fiscal year.
He also mentioned that the Federal Board of Revenue (FBR) has collected Rs9.3 trillion in taxes, representing a 30% growth.
Aurangzeb stressed the need to maintain macroeconomic stability, stating that while micro-adjustments can be made, a lack of macroeconomic stability would pose significant challenges.
He outlined three key objectives for the budget: increasing the tax-to-GDP ratio to 13% within the next three years, implementing reforms in the LNG, power, and petroleum sectors, and eliminating leakages in the system, which he estimated at Rs. 10 trillion.
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The Finance Minister spoke about the ongoing efforts to digitize the FBR, aiming to minimize human intervention and reduce corruption.
He criticized the concept of “non-filers,” stating that the government’s measures will eliminate this classification altogether. He highlighted the recent registration of 42,000 retailers, a step taken to broaden the tax base, with taxes on retailers set to take effect on July 1st.
Aurangzeb also addressed government spending, noting that ministers have refused to accept salaries and are paying their own utility bills as a symbolic gesture. He mentioned the reduction in the Public Sector Development Program (PSDP) to curb public expenditures and the inclusion of pensions in the budget, a decision made by the Economic Coordination Committee (ECC).
The Finance Minister expressed confidence in the government’s ability to manage the economy, stating that companies experiencing losses will not be subjected to taxation.
He emphasized the government’s commitment to achieving sustainable economic stability, restoring confidence among international institutions, and ultimately leading the country towards a brighter economic future.
