Islamabad: Federal Minister for Finance Muhammad Aurangzeb has stated that we will eliminate the concept of non-filers through our measures.
Speaking at a press conference in Islamabad, Muhammad Aurangzeb said there was a lot of debate about macroeconomic balance, and we want to recognize why we require it. Before getting into the new monetary year, our attempt changed to clear all the backlog, which was finished with the aid of the give-up of May.
Government measures have led to significant economic improvement.
He stated that the World Bank has approved $1 billion for the Dasu venture, and the International Finance Corporation (IFC) has accredited $400 million for PTCL. Economic stability is coming to the U.S., and government measures have substantially improved the financial system. Foreign exchange reserves are $9 billion, and the inflation rate has decreased from 38% to 12%.
The Finance Minister stated that macro stability is a significant challenge at this time, and we need to make it permanent, which is extremely necessary. If macro indicators fluctuate, we will address micro variables, but if macro stability falters, it will be a significant loss.
He explained that the FBR has established that 30% growth is feasible, and the FBR’s target is nine. Three trillion will be met. In the subsequent three years, we propose to increase the tax-to-GDP ratio to 13%, and it’s far anticipated to reach 10. Five next 12 months. The FBR is moving closer to cease-to-quit digitization.
Tax will be imposed on registered retailers starting tomorrow.
Muhammad Aurangzeb stated that he will initiate reforms in the energy and petroleum sectors. Miftah Ismail had proposed taxing retailers, which should have been implemented. From July 1, they will impose tax on retailers, and they will register 42,000 retailers.
He mentioned that he needed help understanding the concept of non-filers, even in Parliament. We will remove the idea of non-filers from the country and punish them in the budget. Ministers are not taking salaries and are paying their utility bills themselves.
The Finance Minister said that the Sindh government is actively pursuing public-private partnerships, and they will also maximize this model here. Although they did not include the pension budget, they discussed it in the ECC. They are bringing the construction sector into the tax net. Announcing something is easy, but you will soon hear about its implementation. We are working on all major areas.
‘We hope this will be the last IMF program.’
Muhammad Aurangzeb said that the Prime Minister claims this will be the last IMF program, and we hope so, too. Economic stability has restored the confidence of external institutions. The less human intervention in the FBR, the less corruption there will be.
He explained that there had been 750 billion in sales tax corruption. Agriculture and IT are our growth sectors. The maximum petroleum levy is 70 rupees, but we must apply the 70-rupee PDL.
The Federal Finance Minister stated that there has been much discussion about the IMF, and the IMF program is inevitable. We must move forward with it. We are making positive progress on the IMF program and must carry it forward.
The IMF program is essential for microeconomic stability.
He mentioned that new taxes put people under pressure, and we consulted the IMF regarding the budget. The IMF program is essential for microeconomic stability.
Muhammad Aurangzeb acknowledged that the burden on the salaried class is increasing. As soon as the economic situation improves, we will relieve the salaried class. They will implement the new pension scheme tomorrow, and relief will only come if your revenues are less than your expenses.
He announced they would clear tax refunds up to June 30 within two to three days. Next year, we will enter the international capital market with Panda Bonds and increase exports. There is no tax on exports, only on income.
We are going to sign a long-term agreement with the IMF.
The Federal Finance Minister said that he has personally visited the privatization sector, and all banks have moved forward based on the privatization sector. Hiring is also happening extensively in banks. Work is underway on outsourcing and privatization.
He mentioned that we would sign a long-term agreement with the IMF and prepare the budget in consultation with the IMF. Closing a department is impossible; existing projects need to continue.
Muhammad Aurangzeb added that Pakistan’s exports will increase under CPEC II. The provinces have started a consultation on revenue and expenses. We are telling them to bear their costs themselves, and their annual plans should include projects solely related to them. It takes two hands to clap.
