ISLAMABAD: Finance Minister Muhammad Aurangzeb emphasized the critical role of economic cooperation with China, noting that Beijing supported Pakistan’s recent agreement with the International Monetary Fund (IMF).
Speaking at a press conference, Aurangzeb announced that China would back Pakistan during the IMF board’s meeting for a new loan agreement.
Aurangzeb highlighted the strong, fraternal relations between Pakistan and China. He mentioned detailed discussions held with Chinese officials on various projects, including energy initiatives, Panda Bond issuance, and the conversion of coal power plants to use local coal.
The minister outlined several robust measures being implemented to improve Pakistan’s economy. He emphasized ongoing reforms within the Federal Board of Revenue (FBR), noting that Prime Minister Shehbaz Sharif chairs weekly meetings to oversee these efforts. Aurangzeb stressed that reducing the burden on the lower-income class remains a top government priority.
Expressing gratitude to the chief ministers of all four provinces for their support of the government’s tax reform agenda, Aurangzeb expressed hope that they would introduce tax legislations to include the agricultural sector in the taxation regime. He argued that incorporating untaxed and under-taxed communities into the tax system is essential for achieving economic stability and simplifying tax collection.
Aurangzeb also highlighted the government’s efforts to facilitate the business community. He mentioned that claims worth 68 billion rupees have been refunded so far. Notices will be sent through a centralized system, and field formations will be authorized to collect taxes accordingly.
Addressing tax evasion and fraud, the minister revealed that a potential tax worth 600 billion rupees had been identified, with one billion rupees already recovered. Additionally, customs misclassification issues have uncovered potential tax amounts ranging from 50 to 200 billion rupees. Aurangzeb urged the media to launch a campaign against under-taxed and non-tax-paying communities.
The government is also working on simplifying tax processes to aid businesses and salaried individuals. The simplified process aims to allow taxpayers to respond easily without the need for tax consultants.
Aurangzeb stressed the importance of rightsizing within the government, identifying five ministries—Kashmir and Gilgit Baltistan, SAFRON, Industries and Production, IT and Telecom, and Health—that have been shortlisted for restructuring. He noted that Prime Minister Shehbaz Sharif would make the final decision on these matters.
