Kamalia: Federal Finance Minister Senator Muhammad Aurangzeb today reiterated government’s commitment to reduce expenditures and boost revenues as part of a comprehensive effort to strengthen the country’s economy on sustainable grounds.
Addressing a press conference in Kamalia today, he said that the tax collection is essential for running the country therefore, the government is trying to expand the tax base and introduce digitization of the tax system to eliminate corruption.
He said that retail sector will be brought under the tax net from 1st of next month and over 32,000 retailers have been registered for the purpose.
Mohammad Aurangzeb said that various measures have been taken to improve agriculture sector, including introduction of technology in agriculture and provision of interest free loans to small farmers.
Finance Minister urged the private sector to come forward for the economic growth in the country.
He said the government’s plans aim to strengthen the country’s economy, reduce dependence on aid, and promote sustainable growth through taxes, compliance, and development in key sectors like agriculture and IT.
The minister said the federal government would shut down parallel ministries or departments that have been devolved to provinces.
This move is expected to significantly reduce expenditure and improve efficiency, adding, the Prime Minister has already announced the closure of Pakistan Public Works Department, a move that will help reduce the financial burden on the government.
Secondly, the government will privatize state-owned enterprises (SOEs), which have been a significant drain on the national exchequer. The minister cited the example of Pakistan International Airlines (PIA), which has a liability of 622 billion that has been transferred to the government. The privatization of SOEs will help reduce the financial burden on the government and improve efficiency.
The minister also announced that airport outsourcing is being completed, with Karachi airport set to be handed over to the private sector by July or August this year, to be followed by Lahore airport.
The government is committed to reducing losses and burdens on the federal government, and these measures are part of a larger effort to achieve this goal. The minister emphasized that the Prime Minister was personally leading the effort to reduce expenditures and improve efficiency.
On revenue side, the minister emphasized the need to increase the tax-to-GDP ratio from 9.5% to 13% over the next three years, stressing that taxes are essential for running the country.
To achieve this goal, the government has announced revenue measures, including bringing the non-taxable sector into the tax base, gradually eliminating tax exemptions worth Rs 3.9 trillion, and rephrasing policies in areas like health and agriculture.
He reiterated government’s commitment to develop the agricultural sector, saying Rs.41 billion have been earmarked the federal Public Sector Development Program (PSDP) to promote this sector adding government also intends to solarize tube wells, provide loans to small farmers, and develop warehouses to facilitate small farmers. He said, subsidies on fertilizer, seeds and agriculture would continue. He said, banks, including Islamic banks are being pursued to facilitate loans for farmers to help promote this sector.
In the IT sector, the government aims to facilitate freelancers and increase exports from $3.5 billion to $7 billion. He said, an hefty amount has been earmarked in the budget to facilitate IT sector.
