US lauds Pakistan's bold reforms in taxation, energy sector

ISLAMABAD: Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday reiterated the government’s resolve to carry on with broad-based reforms on taxation, energy and state-owned enterprise (SOE) fronts.

The minister was talking to United States (US) Ambassador Donald Blome who called on him and discussed matters of mutual interest and bilateral cooperation, said a news release.

Aurangzeb said the government was committed to raising the country’s tax to Gross Domestic Product (GDP) ratio to 13.5 per cent by plugging leakages and bringing untaxed sectors in the net.

He said the government under dynamic leadership of Prime Minister Shehbaz Sharif had approved a comprehensive transformation plan for Federal Board of Revenue (FBR) and brought in experts on the Board of PRAL (IT arm of FBR).

The minister called the macroeconomic reforms “work in progress” and pointed to more serious challenges of climate change and child stunting which threatened to perpetuate inequalities and disrupt the pace of economic growth and stability in Pakistan over the medium to long term.

Pakistan looked forward to build climate resilience through adaptation reforms and averting malnutrition with the technical and financial support of development partners for ensuring holistic development goals, he added.

US Ambassador appreciated Pakistan’s efforts for improving macroeconomic stability and lauded the government for initiating challenging and bold reforms, particularly in the taxation and energy sectors.

He reaffirmed his commitment to enhancing bilateral cooperation in technical and development initiatives, and promoting high-quality US investment for economic growth of Pakistan.