Islamabad (Commerce Desk): Federal Finance Minister Mohammad Aurangzeb has acknowledged that some companies are exiting Pakistan, citing high taxes and rising energy costs as real challenges. He emphasized that economic reforms are essential for the country’s growth and that the private sector must play an active role in the economy.
Speaking at the Pakistan Policy Dialogue in Islamabad, the Finance Minister said that tax policy has been shifted from the FBR to the Finance Division to separate policy-making from tax collection, allowing the FBR to focus solely on revenue collection. He added that by June, all government payments will be transferred to digital channels, and non-banking individuals are being integrated into the formal financial system.
Minister Aurangzeb also highlighted remittances, noting that $38 billion were received last year, with expectations of $41 billion this year. He stressed the need to rationalize duties and reduce business costs, noting that for the first time in 78 years, duties on raw materials are being reduced, which will boost exports and industrial production.
He further mentioned that local investors participated in the privatization of PIA, with 24 institutions referred to the commission during the process. The minister also pointed out losses and corruption worth approximately one trillion rupees annually in state-owned enterprises.
Prime Minister’s Advisor on Privatization, Mohammad Ali, stated that reforms are indispensable for sustainable economic growth and that export-led development is being promoted. He emphasized the importance of women’s participation and structural reforms for economic progress, noting that privatization is an effective way to correct market inefficiencies.
