KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb, Monday, reiterated the government’s commitment to transform macroeconomic stability into sustainable economic growth while taking all the stakeholders on board.
He expressed the views while addressing a press conference after a meeting with Overseas Investors Chamber of Commerce and Industry (OICCI) here. The Advisor to Finance Minister Khurram Schehzad, President OICCI Yousaf Hussain and Secretary General OICCI Abdul Aleem were also present.
The finance minister informed the media about his two separate meetings with executives of banking sector and overseas investors aimed at discussing the overall macroeconomic stability achieved in the previous fiscal year and role of banking, trade and industrial sectors in realization of objectives of sustainable economic growth.
The overall improvement in economic situation has lowered the government’s dependence on borrowing from banking sector and resultantly availability of private sector financing in the country has improved as well, he noted and commended the increase in financing to agriculture and private sectors.
The privatization process of PIA and other 24 state owned entities (SOEs) as well as revival of sick units and role of the banking sector in this regard were discussed in detail in the meeting, with banking sector executives that was also attended by Governor SBP, the Finance Minister informed, adding that big private sector companies were ready to participate in the privatization process while government is framing an industrial policy that comprises revival of sick units and key role of banking sector in the process.
Minister Aurangzeb, referring to his meeting with senior leadership from major multinational companies operating in Pakistan at OICCI, said that we want to take national and international investors along in Pakistan’s journey towards sustainable growth.
He highlighted the transformation of the Federal Board of Revenue for simplification and automation of processes and said that it would help enhance confidence of the public and business community over the taxation system and policies.
On the matter of delegating extended powers to tax authorities, the finance minister stated that the matter was reviewed in detail- clause by clause- in standing committees of both the lower and upper houses of the parliament and technical opinion was also sought from legal experts.
We have developed various safeguards in the law for dealing with the issue of Sales Tax frauds and the option of arresting the alleged fraudulent person would be enforced in the case if the amount under question surpassing Rs 50 million and that too with approval of three member FBR board at commissioner level, he clarified and informed that a meeting with representatives of business community is scheduled on Tuesday in Islamabad to address their reservations.
He said that maximum possible relief was extended through the budget 2025-26 in the income tax to the salaried class while tax return forms were simplified as well. We wanted to facilitate the salaried class through simplification of the process and the same facility will be extended to small traders and SMEs in future, he added.
The finance minister while responding to a media query, stated that engagements with trade and industrial community was a continuous process so that suggestions could be acquired for transforming the macroeconomic stability into sustainable growth.
To another question, he informed that commodity prices were being monitored by the Economic Coordination Committee (ECC), besides other relevant forums, so that necessary steps could be taken immediately.
Prices of different commodities keep fluctuating and federal and provincial governments take necessary actions in this regard, he said, adding that he personally believed that pricing mechanisms should be deregulated and left to be settled as per market dynamics and demand and supply situation.
The finance minister, at this occasion, also highlighted the budget measures for the real estate and construction sector particularly for first time property holders and small housing units and said that the government was focusing on provision of easy loans and the State Bank is working on a comprehensive scheme in this connection that will be finalized soon.
President OICCI Yousaf Hussain, at the occasion, acknowledged the government’s progress in stabilizing the economy and welcomed the improving macroeconomic indicators and renewed signs of stability and government’s endeavor of engaging the private sector.
