KAMALIA: Pakistan’s Federal Finance Minister Senator Muhammad Aurangzeb on Tuesday reiterated the government’s commitment to reduce expenditures and enhance efficiency through significant structural changes to strengthen the country’s economy.
Addressing a press conference in his hometown, Kamalia, the minister emphasized the urgent need for privatization of state-owned enterprises (SOEs) and outlined key measures to bolster the country’s financial stability.
Senator Aurangzeb highlighted that the federal government would shut down parallel ministries or departments that have already been devolved to provinces. “This move is expected to significantly reduce expenditure and improve efficiency,” he stated. Among the first steps in this direction, Prime Minister Shehbaz Sharif has announced the closure of the Pakistan Public Works Department.
The minister stressed that privatizing SOEs, which have been a substantial drain on the national exchequer, is imperative for economic stability. “If PIA was privatized 10 years ago, there would not have been so much loss,” he remarked, referencing the national airline’s ongoing financial struggles.
In a major development, Senator Aurangzeb revealed that the government is completing the outsourcing of major airports. Karachi airport is set to be handed over to the private sector by July or August this year, with Lahore airport to follow.
On the revenue front, the minister underscored the importance of increasing the tax-to-GDP ratio from the current 9.5% to 13% over the next three years. “Taxes are essential for running the country,” he asserted. To achieve this target, the government has introduced several revenue measures, including bringing the non-taxable sector into the tax base and gradually eliminating tax exemptions worth Rs3.9 trillion. Policies in critical sectors such as health and agriculture are being rephrased to enhance revenue generation.
The Finance Minister said that the government is also focusing on improving compliance, plugging leakages in the system, and implementing an end-to-end digitization system to reduce human intervention, increase transparency, and curb corruption. “Sales tax automation is a top priority of the incumbent government,” the minister remarked.
Additionally, Senator Aurangzeb assured that Prime Minister Shehbaz Sharif’s recent visit to China was geared towards technology transfer, industry development, and enhancing exports rather than seeking aid.
