Finance Minister Aurangzeb stresses tax compliance and private sector growth

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2024-09-10T07:23:43+05:00 AFP

 


 


Federal Finance Minister Muhammad Aurangzeb has said that the government is committed to implementing structural reforms aimed at revitalizing Pakistan’s economy, reported 24NewsHd TV channel.  


During a Senate session in Islamabad on Monday, he said that the government is focused on a three-point agenda that, if successfully executed, could eliminate the need for further International Monetary Fund (IMF) programs in the future.


"We are determined to bring structural reforms to this country," stated Finance Minister Aurangzeb.


He went on to explain that achieving success on the government's outlined economic reforms would not only stabilize the national economy but also ensure that Pakistan no longer needs IMF support.


"If we succeed in implementing our three-point agenda, this will undoubtedly be the last IMF program Pakistan undertakes," he confidently asserted.


The minister assured the Senate that he would soon provide a briefing to Parliament regarding the government's comprehensive economic plan.


“This plan is designed to address key areas of economic concern and steer the country towards sustainable growth.”


He noted that inflation has dropped to single digits, and exports have shown remarkable improvement in July and August.


Senator Shibli Faraz questioned the country's tax collection shortfall. He inquired about the government's plan to address the Rs98 billion gap in tax revenue. "What is the government's strategy to make up for the shortfall in tax collection, and what is the overall economic plan?"


In response, Finance Minister Aurangzeb highlighted the increase in credit to the private sector, which has grown by half a trillion rupees.


He stressed the importance of fiscal discipline, noting that the government’s role is not to engage in business but to facilitate the private sector in driving economic growth.


"The Prime Minister stated that the government's job is not to do business but to enable the private sector to flourish," Aurangzeb explained.


He further acknowledged the need for public confidence in economic policies and institutions. "We cannot move forward unless we restore trust. The Prime Minister has started reshuffling officials to improve governance. We are accountable to 240 million people, but we cannot make excuses for not paying taxes because we don’t trust the tax authority," Aurangzeb said.


He called on the private sector to take a leading role in driving the country’s economy, asserting, "The private sector must lead this country forward."


During his address, Aurangzeb also endorsed the need for the digitalization of the Federal Board of Revenue (FBR), agreeing with previous suggestions on modernizing tax collection mechanisms. "We must restore public confidence in the tax authority if we are to move forward," he emphasized. "It is impossible to achieve development without paying taxes. This country cannot run on charity; we need tax revenue to sustain growth."


 


Reporter: Awais Kiyani 

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