Federal Finance Minister Muhammad Aurangzeb addressing a press conference said the country is witnessing economic stability, with inflation rates dropping significantly from 38 percent to 12 percent.
The finance minister said Rs750 billing corruption was uncovered in sales tax, urging reforms in the Federal Board of Revenue (FBR).
Aurangzeb revealed that a significant corruption of Rs750 billion rupees has been uncovered in sales tax.
He assured that measures are being taken to address this, with sales tax refunds amounting to over Rs50 billion to be processed within the next 2-3 days. He also mentioned that Rs2700 billion are stuck due to tax cases, and resolving even half of these would be highly beneficial for the economy.
He highlighted key areas of progress and ongoing reforms aimed at bolstering Pakistan's economy. He emphasized that the government's efforts have restored the confidence of foreign institutions, as evidenced by the World Bank's approval of a $1 billion project for Pakistan. Additionally, the nation's foreign exchange reserves stand at $9 billion.
Aurangzeb urged the need to facilitate foreign investors, revealing ongoing talks about investment opportunities in the country.
He expressed optimism about achieving the Federal Board of Revenue’s (FBR) tax target of 9300 billion rupees and mentioned that taxes are being paid at a rate of 12% of GDP over the past three years.
The minister outlined plans for reforms in the energy and petroleum sectors, highlighting that improvements in these areas would lead to sustainable economic stability and stressed importance of curbing tax evasion and preventing corruption through FBR digitization, which he believes will increase transparency and efficiency in tax collection.
Sectoral Taxation and New Pension Scheme
The Finance Minister announced that the construction sector and the supply side are being brought into the tax net. A new pension scheme is set to be implemented from tomorrow, aimed at providing better financial security for retirees.
IMF Program and PPP
Aurangzeb confirmed that the government is adhering to the terms of the IMF program, which includes a tax exemption of 3.9 trillion rupees. He also mentioned that the government is shifting towards Public Private Partnerships (PPP) instead of relying solely on the Public Sector Development Program (PSDP).
Petroleum Development Levy
The Finance Minister clarified that the Petroleum Development Levy (PDL) is not increasing at present, and the current rate of 70 rupees PDL will not be applicable. This move is intended to provide relief to the public amid rising fuel prices.
Minister Muhammad Aurangzeb's press conference highlighted the government's commitment to economic stability and transparency through ongoing reforms and initiatives. The measures outlined aim to foster investor confidence, curb corruption, and ensure sustainable growth for Pakistan's economy.
