Federal Finance Minister Muhammad Aurangzeb has shared positive news about Pakistan’s economic progress, highlighting significant government initiatives aimed at fostering stability and growth.
This year, the number of new tax filers has risen by 723,000, doubling last year’s figures and bringing the total to 3.2 million, up from 1.6 million.
Aurangzeb noted that Pakistan’s economy is on the rise, crediting government policies for a decline in inflation and emphasizing the need to increase tax revenue.
He reported that inflation has decreased to single digits, exports have risen by 29%, and the IT sector’s exports have also seen growth.
Moreover, he mentioned that the country’s foreign exchange reserves have reached an all-time high, along with a 4.5% drop in the policy rate due to lower inflation.
Aurangzeb expressed optimism regarding the stock market’s potential for further growth, asserting that macroeconomic stability has provided a strong foundation for economic advancement. He framed macroeconomic stability as both a goal and a pathway to success, underlining the significance of investor confidence and recognizing the positive influence of the previous caretaker government.
He indicated that economic stability is on the horizon and expressed hope that exchange and policy rates would align with expectations. He urged the private sector to take the lead in the nation’s growth and announced plans to bring in foreign experts for support.
The finance minister warned that non-filers would encounter difficulties when attempting to purchase vehicles and properties, as well as with banking transactions.
He noted that around 300,000 of the filers are wholesalers, with only 25% registered for sales tax and 14% for retail sales tax. Production units can only sell to registered wholesalers, while non-registered entities will face challenges accessing utility services. The minister confirmed that the government is implementing measures to combat smuggling.
He also announced reforms within the Federal Board of Revenue (FBR), clarifying that the FBR will not handle audits and that 2,000 chartered accountants will be recruited for this purpose.
Aurangzeb stated that strict accountability will be enforced for tax collectors, and the FBR’s auditing capabilities will be enhanced. He urged the chief ministers of the four provinces to focus on price control committees and ensure that directives are followed.
Additionally, the minister outlined plans to streamline government ministries and departments by closing two federal ministries, merging another, and eliminating 150,000 vacant positions.
Aurangzeb reiterated that strict accountability will be upheld for tax collectors, ensuring that no actions are taken against taxpayers without public hearings.