- The retailers asked to formalize companies, to pay a fair share.
- Pakistan aims to upgrade the “single B” credit rating.
- Rs 9.4 Billions in cash to be formalized.
Islamabad: Federal Minister for Finance Muhammad Aurangzeb announced Thursday that artificial intelligence will be used to increase tax perception while raising concerns about the disproportionate tax burden in Pakistan.
Speaking at a conference on “Returned retail: innovating, collaborating and prospering”, organized by Pakistan Retail Business Council (PRBC), the Minister said that the country’s retail sector, which contributes to 19% significant to the country’s GDP, pays just 1% of taxes, arousing concerns concerning the lack of contribution from the sector to the National Treasury.
He stressed that the disproportionate burden on the manufacturing, services and wage class is not sustainable.
“We must bring other segments, including agriculture, real estate, retail and wholesale, in the tax net.” He praised the provincial government for taking measures for this purpose by adopting bills in their respective assemblies to impose agricultural taxes.
He said the government had committed to the retail sector, asking them to formalize their businesses and pay their taxes. For a national interest, “we can no longer allow ourselves to make people take a free journey”, the addition of documentation was essential to achieve this goal.
Later, while addressing the media, he announced that artificial intelligence would be used to increase tax collection.
The financial tsar added that there are 9.4 billions of rupees in cash circulation, which was to be introduced in the formal economy, admitted that this could not be done overnight, but the government was determined to move in the right direction.
The economy, added the minister, has taken a significant turn for the best, with macroeconomic stability firmly in place as the currency stabilized, the exchange reserves increased and inflation fell, the rate Policy considerably decreasing Kibor to withdraw from 23% to 23% to 23% to 23% to 23% to 23% at around 11%.
These positive developments have not gone unnoticed while foreign investors again take a remark for the economic potential of Pakistan. Institutional flows return to the country, investments flowing both debt and equity teams.
The Minister also declared that Pakistan was actively engaged in international rating agencies, with a clear objective in order to upgrade its credit rating in category “B”.
Aurangzeb said that the country had already made significant progress in this direction, with a significant upgrade in the last calendar year. Drawing on this momentum, Pakistan hopes to obtain a new upgrade, which would have large -scale implications for its economic prospects.
A note of “B” would improve not only the credibility of Pakistan in the eyes of international investors, but will also open the way to the country to diversify its funding base and resume access to national capital markets. This, in turn, would help Pakistan to establish itself again as a “bankable brand”, marking an important step in its economic renewal.
He added that the government focused on achieving sustainable and inclusive growth instead of being taken in arrow and blow cycles as in the past.
The Minister said that the structural reforms of taxation, energy, public enterprises (public enterprises) and public finances were underway. A major overhaul of the tax system is underway, emphasizing end -to -end digitization to promote transparency, reduce leaks and fight corruption
The introduction of faceless customs has already shown promising results, 80% of imports being erased in the 6 to 7 p.m., against 118 hours. This rationalized process has eliminated the culture of facilitation money, promoting a more effective and trustworthy tax authority.
In the energy sector, efforts are made to move on to competitive energy, the Minister of Finance added.
He declared, a cabinet committee, chaired by him, was the spearhead of reforms in 43 ministries with 400 departments, adding that 20 ministries have already been taken care of and the process would be completed by the end of June .
The Minister of Finance explained that the private sector was positioned to take the lead to stimulate the country’s growth, the government providing a political framework and guaranteeing the continuity of policies.
To carry out a budgetary discipline, the government has launched an exercise in the dimensioning of the law and implemented pension reforms, with new recruits of civilian bureaucracy now on a defined contribution system.
IMF mission to visit Pakistan next week
Addressing the media, Aurangzeb revealed that the IMF team would arrive in Pakistan on February 24 to organize discussions on a climate resilience fund.
He said Pakistan expected $ 1.5 billion in climate funding from the IMF.
The second mission of the IMF would visit Pakistan in March for a six -month examination as part of the installation of extended funds of less than $ 7 billion (EFF), the financial TSAR said that all questions related to the world lender were good.
The Minister of Finance said that the current account had displayed a deficit of $ 420 million in January 2025, up 4% against $ 404 million the same month of last year.
However, he pointed out that the current account maintained a surplus of $ 682 million in the first seven months of fiscal year 25, a net reversal compared to the deficit of $ 1.801 billion in the same period last.
After having recorded surpluses in recent months, the Pakistan current account posted a deficit of $ 420 million in January 2025, a significant increase of 4% compared to the deficit of $ 404 million during the same month of The previous year, data published Tuesday by Tuesday by Tuesday by $ 404 million The Pakistan State Bank (SBP) showed.