FM Aurangzeb urges reforms to avoid IMF in future
Federal Minister for Finance and Revenue Muhammad Aurangzeb stated on Thursday that fundamental economic reforms are essential to ensure that the current IMF program will be the last one for Pakistan.
He emphasized the need for structural changes to transform Pakistan into an export-driven economy, in an interview with Voice of America following the IMF’s approval of a $7 billion loan for the country.
He said the government aim is to take the burden off salaried individuals and the manufacturing sector while focusing on involving retailers, wholesalers, agriculture, and property sectors into the tax system.
Despite a 29 percent increase in revenues last year, the tax-to-GDP ratio remains at 9 percent, which he indicated is inadequate for stabilizing the country’s economy.
Aurangzeb further stated that the government plans to eliminate the term “non-filer” and would impose restrictions on tax evaders.
He said that the government have access to specific information on individuals’ lifestyles, including the vehicles owned, international travel history, and other expenditures. The Federal Board of Revenue (FBR) will be able to bring tax evaders into the tax system through this data without arrest, he stated.
Aurangzeb also highlighted that Pakistan’s undocumented economy is valued at Rs9 trillion, making it crucial to document this sector for achieving economic stability.
He noted that the government possessed data on individuals’ lifestyles, including the number of vehicles owned, international travel, and other expenditures. This information will enable the Federal Board of Revenue (FBR) to bring tax evaders into the tax net without arrest, he added. Senator Aurangzeb said Pakistan’s undocumented economy had been valued at Rs9 trillion, which needed to be documented.
