Islamabad: Muhammad Aurangzeb, the federal finance minister, has stated that the private sector must step up to govern the country since no one is willing to make deposits or loans. The country cannot function on donations.
He said this while meeting with a Veon Group delegation at Finance Division. Mr. Augie K. Fabela, the founder and chairman of the Board Veon Group, headed the delegation. Other attendees were Mr. Aamir Ibrahim, CEO of Jazz, Ms. Marine Babayan, Group Director of Corporate Affairs at VEON, and Mr. Kaan Terzioglu, Group CEO of VEON.
The Minister reaffirmed the government’s commitment to tax changes during the meeting, emphasizing the use of people-processed technology and end-to-end digitalization to increase transparency, close leaks, and enhance services.
To have a fact-based conversation on FBR’s attempts to generate revenue and mobilize resources, he said that data analytics is essential.
He stated during his speech at the Islamabad Literature Festival that the United Arab Emirates (UAE), Saudi Arabia, and China are attempting to attract investment from friendly nations. Currently, the prime minister is quite explicit on foreign direct investment. The business-to-business approach will be used for everything.
In response to a question about the mini-budget, the finance minister stated that Allah will do excellent this time.
The country’s economy has stabilized, according to Mohammad Aurangzeb, who also said there has been significant progress in the past 12 to 14 months, the currency is steady, and the currency and foreign exchange reserves have also stabilized. By June, they will be adequate to cover three months’ worth of imports.
Also read: Pakistan’s Economy Moving Towards Stability, Says Finance Minister Aurangzeb
As the price of chicken meat dropped by 14% on the global market and rose by 15% in Pakistan, he said that the average person should profit from the decline in inflation.
He claimed that there is no secret in the loan deal with the IMF that the government has returned a billion-dollar loan, and that foreign exchange reserves are still strong.
The finance minister stated that the government cannot be governed by donations and that the private sector should take over.
He also stated that a 9–10% tax-to-GDP ratio is unsustainable and that structural and tax reforms are required. To regain the institution’s legitimacy and confidence in FBR.
Furthermore, according to Mohammad Aurangzeb, there is an emphasis on technology for digitization; nevertheless, technology is merely a component of digitization, which will shut the leak as it progresses.
He stated that the corporate sector should refrain from using speed money, that bribery and corruption in refunds must be eliminated, and that even as a salaried individual, I cannot complete tax returns without the assistance of an advisor.
The finance minister sought investment from friendly nations like China, Saudi Arabia, and the United Arab Emirates, acknowledging that no one is prepared to roll over deposits and loans.
Also read: Aurangzeb Meets World Bank’s Anna Bjerde to Discuss Development Priorities
The first phase of the China-Pakistan Economic Corridor (CPEC) was for infrastructure development. The second phase is for business-to-business transactions, and the prime minister is quite clear about foreign direct investment. It will take place at the company level instead.
The finance minister did not address the question about the budget. The IMF proposal includes tax income, he noted, but there are many other things to do.
Muhammad Aurangzeb stated that an agricultural tax would be implemented in the provinces. He also stated that the national financial agreement’s target date was September 30. He expressed gratitude to the provinces for their cooperation in this matter and their collaboration on revenue, expenditure, and governance. We will cooperate.
For the new filers, he stated that we are well ahead of the goal. He would update the IMF delegation on the success of tax collection from shops, including the amount collected in three months and the target amount.
The finance minister added, “We are asking retailers to work with us on pension reforms and debt servicing (loan and interest payment) for fiscal capacity.”
According to him, the government does not interfere with the two main crops, rice and corn, which exported $4 billion last year. Where the government does interfere, there are issues and scandals, especially with sugar and wheat.
Also read: Pakistan ready for CPEC-II to monetize first phase : FM Aurangzeb
He pointed out that there was a real appetite amongst international investors and bilateral partners to invest in Pakistan.
However, this appetite for foreign investment in Pakistan could only materialize through the private sector which had the potential, energy and drive to come up with bankable, investable projects for joint business ventures and collaborations with the foreign investors.
