Islamabad: Finance Minister Muhammad Aurangzeb emphasized the importance of the China-Pakistan Economic Corridor (CPEC) Phase-II and major tax reforms during an interview, noting these steps as critical for the revival of Pakistan’s industry and economic stability. The reforms are aligned with the expectations of the newly approved International Monetary Fund (IMF) program, which the government aims to make the last of its kind by implementing structural changes in the economy.
According to Ministry of Information and Broadcasting, Minister Aurangzeb outlined several economic strategies during his discussion with a foreign media organization. He highlighted the necessity of fundamental reforms to ensure the sustainability of financial support from the IMF. The minister expressed the intention to alleviate the additional financial burdens on the salaried class and the manufacturing sector. He also announced plans to abolish the term ‘non-filer’ and enforce stricter measures on tax evasion, which will include using lifestyle data to bring non-taxpayers into compliance.
Furthermore, Aurangzeb detailed the government’s approach to widen the tax net, which will now include sectors like retail, wholesale, agriculture, and property that were previously less regulated in this context. The Federal Board of Revenue (FBR) will utilize existing data to integrate non-taxpayers into the system without resorting to detention.
On international relations and support, the Finance Minister appreciated the backing of the United States in the IMF’s Executive Board meeting, citing the US as a pivotal stakeholder and a hopeful source of increased future investments. He also acknowledged the significant financial contributions from friendly countries, particularly China, which is also a major partner in the CPEC initiative.
Addressing concerns about the IMF program’s delays, Aurangzeb reassured that the approval process was phased and timely, and the challenges were due to the non-implementation of past programs rather than current policy measures. He remained optimistic about the ongoing economic reforms and their alignment with the IMF’s expectations, noting recent improvements in the country’s fiscal stability, such as the stabilization of the rupee and a boost in foreign exchange reserves, which have collectively contributed to a reduction in inflation rates.