Finance Minister Muhammad Aurangzeb has said that the number of tax filers in Pakistan has doubled over the past year, with 723,000 new individuals added to the tax net.
Speaking at a press conference in Islamabad, the minister confirmed that the total number of tax filers in the country has risen from 1.6 million to 3.2 million. He emphasized that non-filers will face strict limitations, including restrictions on purchasing vehicles, property, and difficulties in banking transactions.
Aurangzeb also highlighted several key economic indicators, stating that inflation has dropped to single digits, exports have surged by 29 percent, and IT sector exports have grown significantly. The country's foreign exchange reserves have reached their highest level, and the stock market has performed well, signaling increased investor confidence.
He acknowledged that Pakistan’s economy has achieved macroeconomic stability, although he noted that this is an ongoing process rather than a final goal. The finance minister stressed the importance of the private sector leading the way forward, and announced a 4.5% reduction in the policy rate due to declining inflation.
The government is also moving forward with structural reforms.
The finance minister said federal government has plans to downsize government institutions by abolishing 150,000 posts across various ministries. Additionally, six ministries will be eliminated, and two will be merged as part of efforts to streamline governance.
Aurangzeb also outlined tax reforms, stating that only registered wholesalers will be allowed to purchase from manufacturers, and technology will play a central role in tax collection with the introduction of RFID and video analytics.
He said the Federal Board of Revenue (FBR) will enhance its audit capacity by hiring 2,000 chartered accountants through a third-party system.
The finance minister acknowledged that these reforms may cause short-term difficulties but are necessary for Pakistan’s long-term sustainable development. He also emphasized two major challenges facing the country: the unsustainable population growth rate of 2.5% and the pressing threat of climate change. He underscored the need for Pakistan to prepare for these challenges while continuing with economic restructuring, aiming to make this the last IMF loan program for the country.
