FinMin Aurangzeb vows to fight tax fraud

Islamabad: Finance Minister Muhammad Aurangzeb on Thursday expressed the commitment to fighting tax fraud.

Addressing a news conference in Islamabad, he said our aim is to enhance the tax-to-GDP ratio to over thirteen per cent and ensure a tax regime which is equitable and fair. He said every sector should contribute its role in improving the economy.    

The Finance Minister said we are left with no other option, but to plug the leakages through enforcement.

The minister emphasized that the government’s role was not to do business but to facilitate the private sector. He welcomed Saudi Arabian delegates to promote trade and investment through a Business-to-Business (B2B) model.

Aurangzeb cited significant progress in macroeconomic stability over the past 12-14 months. Pakistan achieved a primary surplus, reduced its current account deficit to less than $1 billion, stabilized its currency, and increased foreign exchange reserves to cover two months of imports.

The minister noted that these gains have been consolidated in the current fiscal year, with strong remittances, export growth, and a reduction in inflation from 38% to 6.9%. The decrease in policy rate has also benefited businesses.

Pakistan’s credit rating has been upgraded however more was to be done to get the rate at B- at least. He said institutional flows were coming back to the country on both the debt and equity sides.

The Islamabad Stock Exchange reached a record high, and the International Monetary Fund (IMF) board approved an extended program for the country. He said the IMF programme has two implications including bringing permanence in macroeconomic stability and secondly to execute structural reforms. He reaffirmed the government’s commitment to structural reforms, promoting sustainable growth and tax reform.

Speaking on the occasion, Chairman FBR Rashid Mahmood Langrial said that strict action will be taken against those involved in tax fraud.