China to support Pakistan in securing IMF deal: Finance Minister

Islamabad: Finance Minister Muhammad Aurangzeb announced on Sunday sad that China will help Pakistan to secure approval for the International Monetary Fund (IMF) agreement.

Speaking at a press conference in Islamabad, Aurangzeb discussed efforts to improve the country's economic situation. He emphasized the need to provide public facilities if taxes are increased, highlighting the importance of both the United States and China as key partners for Pakistan.

The finance minister mentioned ongoing discussions about local tax matters, aiming to reduce the tax burden on lower-income populations and simplify the taxation process for traders. He criticized tax defaulters, stressing the importance of tax payments for economic stability.

Aurangzeb noted that reforms in the Federal Board of Revenue (FBR) are reviewed weekly, and provincial governments are encouraged to legislate taxes in the agricultural sector. He stated that non-filers would no longer receive direct notices from tax officers, reducing harassment and ensuring a centralized notification system.

The finance minister also discussed the need to streamline government expenditures and potential mergers of certain ministries. He mentioned detailed talks with Chinese officials on energy, including converting coal power plants to local coal and issuing Panda Bonds.

Chinese ministers praised Pakistan's negotiations with the IMF and assured support for the agreement's approval by the IMF board. Aurangzeb emphasized the importance of simplifying tax processes, comparing it to more straightforward tax systems in other countries, where annual forms provide clear tax details without the need for legal assistance.