ISLAMABAD: Finance Minister Muhammad Aurangzeb said that the IMF mission is reaching Islamabad on February 24 to discuss $1.5 billion in climate change financing.
He is optimistic of further IMF financing to Pakistan amid the implementation of the reforms.
He also acknowledged the financial strain on the salaried class, emphasizing that relying solely on taxing them is not a sustainable approach to address fiscal challenges.
Speaking at the Retail Business Council in Islamabad, the minister underscored the need for equitable tax contributions from all sectors. He highlighted that despite their significant role in the economy, the agriculture and retail sectors contribute disproportionately less to tax revenues.
Aurangzeb warned of strict action against tax evasion, stating that the government would no longer tolerate practices such as sales tax fraud and the use of fake invoices. He also mentioned that budget proposals from the business community are being actively gathered to ensure inclusive policy-making.
On the broader economic front, the minister noted improvements in foreign exchange reserves and a steady decline in interest rates, affirming that Pakistan’s economy is moving in the right direction. He attributed this progress to Prime Minister Shehbaz Sharif’s leadership and proactive efforts to stabilize the economy.
Aurangzeb also highlighted ongoing reforms, including reducing customs clearance times to 18 hours and implementing modern tax systems to streamline processes. Additionally, he reaffirmed the government’s commitment to “right-sizing” public institutions, a reform initiative originally launched during the previous PTI administration.
