ISLAMABAD: 29 Sep 2024 – Finance Minister Muhammad Aurangzeb has reaffirmed government’s resolve to implementing homegrown structural reforms in all sectors. Addressing a news conference in Islamabad on Sunday, he said fundamental changes in country’s economy will increase exports and foster sustainable growth.
Muhammad Aurangzeb said bringing structural reforms is not only a requirement by the International Monetary Fund but Pakistan needs it.The Finance Minister said macroeconomic stability, creates a foundation for inclusive and sustainable growth in the country.He said the macroeconomic stability continued during the first quarter of the current fiscal year; however it needs permanence to lead to sustainable growth.
The Finance Minister said for homegrown economic reform agenda, we will always consult our think tanks and take foreign advice into consideration.He said the measures taken by the government are showing positive results as indicated by economic indicators adding the results coming out could be witnessed practically by seeing results.
The Minister said, there has been 29 percent increase in exports on year on year basis whereas inflation has decelerated from 38 percent to single digit and going down further.
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On external front, he said, credit ratings have also gone forward and we will continue this journey till we get into investment grade at least into B or B- ratings as we go forward”.He said PSX is also setting new records and moving in right direction.
The Minister reiterated government’s commitment to reduce size of federal government, adding decision regarding abolition or merger of six ministries has already been made and it is at implementation stage.
On tax side, the Minister said, the return filing has increased double from last year’s 1.6 million to 3.2 million till date whereas there were 300,000 new filers last year, however the number has risen to 723,000 till now.
He highlighted that this significant increase follows Prime Minister Shehbaz Sharif’s recent approval of strict measures on September 20 to enforce tax regulations, including a ban on banking and financial transactions for non-filers. During a press conference in Islamabad, the finance minister, alongside the Federal Board of Revenue (FBR) chairman, emphasized that the government’s actions demonstrate its commitment to tackling tax evasion and ensuring compliance.
Aurangzeb further detailed the extent of tax evasion, noting that underfilers are estimated to have evaded Rs1.3 trillion in taxes. He emphasized the government’s resolve to move toward a documented economy, which is crucial for Pakistan’s progression toward joining the G20. With approximately Rs9 trillion in cash circulation, he estimated that the actual size of the economy exceeds $700 billion.
The finance minister also outlined stricter regulations for non-filers, restricting their ability to purchase vehicles, properties, or mutual funds, and limiting access to banking services.
Pakistan in the World – Aug / Sep 2024
