Finance Minister Aurangzeb Announces Major Tax Reforms and Economic Measures

Federal Finance Minister Muhammad Aurangzeb has announced significant developments in Pakistan’s tax landscape, revealing that 723,000 individuals have joined the tax net this year, doubling the number of registered taxpayers from 1.6 million to 3.2 million. During a press conference in Islamabad, he emphasized the importance of increasing tax revenue for economic stability.

Minister Aurangzeb noted that under Prime Minister Shahbaz Sharif’s leadership, the International Monetary Fund (IMF) program has been approved, which is crucial for the nation’s economic growth. He highlighted that inflation has decreased to single digits, exports have risen by 29%, and reserves are at an all-time high.

“Our government is committed to economic stability,” Aurangzeb stated. “The stock market is hitting new highs, and the macroeconomic stability we’ve established is paving the way for a stronger economy.” He also stressed the need for private sector leadership in the economic recovery, with plans to engage foreign experts to contribute to development.

In terms of government restructuring, Aurangzeb revealed that two federal ministries will be dissolved, and two others merged, resulting in reforms across public institutions and the elimination of 150,000 vacant positions.

He reiterated that non-filers would face restrictions on purchasing vehicles and properties and would encounter difficulties in banking transactions. “Registered taxpayers will receive priority in utility services and product sales,” he added, stressing the government’s commitment to tackling smuggling and reforming the Federal Board of Revenue (FBR).

Aurangzeb announced the hiring of 2,000 chartered accountants to enhance FBR’s audit capabilities and ensure accountability among tax collectors. He underscored that no actions against taxpayers would occur without public hearings, establishing a framework for fairness in tax collection.

The Finance Minister acknowledged that while the upcoming measures might bring short-term challenges, they are necessary for achieving sustainable economic growth. He urged decisive actions now to prevent future burdens on the salaried class and ensure the success of Pakistan’s economic strategies.