FinMin says structural reforms essential for sustainable growth

ISLAMABAD: Finance Minister Muhammad Aurangzeb said that structural reforms are essential to steer clear of boom-bust cycles and toward inclusive, sustainable growth.

Speaking at a Pakistan Retail Business Council event in Islamabad on Thursday, he said that these fundamental changes are already taking place in sectors including public finance, energy, taxes, and State-Owned Enterprises (SOEs).

Muhammad Aurangzeb was pleased that macroeconomic stability had been attained and that the nation was moving in the correct economic direction.

The Finance Minister stated that a significant change is taking place in the taxes sector, with an emphasis on using the newest technologies to increase transparency and prevent leaks.  He underlined that rebuilding confidence in the tax office is equally crucial.

He emphasised that other industries, including retail, wholesale, real estate, and agriculture, would need to step up and pay their fair share of taxes since the salaried class’s excessive tax burden cannot continue.

Muhammad Aurangzeb said that in order to transition to competitive energy, strict restrictions are being put in place.

He said that the rightsizing process for SOE reforms has already begun and would be finished by June of this year.  Additionally, he confirmed that the privatization process will proceed.

Read More: No more free rides, all segments must pay tax for national interest: FinMin Aurangzeb

Earlier, the finance minister said that Pakistan aims to increase its exports to $60 billion in the next five years. In an interview with Saudi Arabian media outlet, the minister said that over the past 12-14 months, Pakistan has made significant progress in economic development,

According to minister, the government has taken key decisions to curb inflation and interest rates, stabilize foreign exchange reserves, and accelerate the privatization process.

The government is committed to right-sizing public sector institutions to reduce losses and improve efficiency. This initiative is expected to result in a significant reduction in government expenditures, said Aurangzeb.