- Global investors responded positively during recent foreign visits.
- Digitization in the FBR aimed to improve tax transparency.
- The current climatic reforms to meet the future environmental challenges.
Islamabad: The Federal Minister of Finance, Muhammad Aurangzeb, reported a tax relief for the salaried class, claiming that the next federal budget – which should be presented on June 10 – will include measures to facilitate the financial burden of employees.
Speaking on Monday during an event in Islamabad, the Minister of Finance said that the government actively endeavored to reduce the tax burden to employees, adding that their income is imposed as soon as it is credited on their accounts.
He underlined the need for a strategic orientation in the budget, not just a state of income and expenses. “We take daring measures in the upcoming budget to show where the economy is and where it is heading,” he said.
Aurangzeb said that Pakistan’s economic recovery is gaining international recognition, with the speed of improvement of surprising observers. He stressed that the digitization of the Federal Board of Return (FBR) is underway and that the reduction in human intervention will increase transparency.
The Minister of Finance also noted that reforms are introduced into the tax system, the energy sector and other areas. “We have already sent 24 public persons to the privatization committee,” he said, adding that the economy is heading for technological transformation.
The Minister shared that during recent meetings with investors in Washington and London, Pakistan received a positive response on its economic prospects. “The world is satisfied with the macroeconomic stability of Pakistan,” he said, reaffirming government’s commitment to long-term reforms.
He also mentioned that the government is working to simplify the tax declaration process for employees and to advance pension reforms.
Aurangzeb has expressed hope that the burden of the country’s debt will deteriorate and declared that climate change remains a major challenge, for which the necessary reforms are underway. Measures will also be taken next year to improve the debt management system.
He noted that rights efforts are underway in federal ministries.
“Pakistan has reached all IMF targets”
Later, addressing the media, Aurangzeb said that the government would support Pakistan’s armed forces to the most extent, stressing that national defense is a collective need, not only that of the military.
Addressing the International Program of the Monetary Fund (IMF), he revealed that there had been attempts to derail the case of Pakistan by disturbing the meeting of the board of directors.
“Efforts have been made to delay the meeting and exclude the Pakistan agenda,” he said. However, the case was discussed on merit and Pakistan reached all the TMI targets.
“If we had not achieved the objectives, we would have encountered serious difficulties,” he said. He confirmed that the implementation of the IMF program continues and that the IMF mission was already a party after constructive talks. Virtual discussions with the IMF will continue during the current week.
Aurangzeb also specified that no decision had yet been made concerning the adjustments of civil or military wages.