ISLAMABAD:
The country’s finance minister has stated that while the International Monetary Fund (IMF) is willing to provide additional financial support, it also insists on the implementation of tax reforms.
Speaking at an event organized by the Faisalabad Chamber of Commerce and Industries on Saturday, Finance Minister Muhammad Aurangzeb emphasized the government’s commitment to these reforms. “The prime minister [Shehbaz Sharif] is clear about the tax reforms we are undertaking,” he said.
Addressing concerns about seeking IMF assistance, Aurangzeb acknowledged the frequent questioning on the matter. “We turn to the IMF to ensure the economy keeps running,” he explained.
He recognized that the salaried class is disproportionately burdened by taxes and announced plans to simplify tax submissions. “We want salaried individuals to submit a form, and by November this year, people from seven different sectors will be able to do so online,” he stated.
The minister highlighted efforts to digitize the tax system, promising further improvements in the coming days.
Discussing Prime Minister Shehbaz Sharif’s recent meeting with Chief Justice of Pakistan Yahya Afridi, Aurangzeb noted that the premier had requested the judiciary to expedite tax-related cases. He stressed that delays in these cases result in an annual loss of Rs1 trillion for the country.
On economic challenges, he addressed inflation and interest rates, noting a gradual decline. “Auto financing rates have already dropped, and the prices of essential items like sugar and ghee have also decreased. Every year, there are concerns over sugar prices, but this Ramazan, they are expected to go down,” he said, attributing price hikes to middlemen.
Regarding the federal government’s rightsizing efforts, Aurangzeb revealed that various ministries and departments are being consolidated to cut costs. “There are 43 ministries, and five to six are being merged. One ministry has already been abolished as part of our expenditure reduction plan,” he stated.
He acknowledged the difficulty of current economic decisions, saying the government’s primary focus is on fostering growth rather than dwelling on past challenges.
Reflecting on his recent visit to Saudi Arabia, Aurangzeb shared insights from discussions with over 30 finance ministers. “The global trade landscape is shifting towards regional trade,” he observed.
“I won’t make promises I can’t keep. You are all my stakeholders, and we must move forward together. Our focus should be on progress, not the past,” he concluded.
