Federal Finance Minister Muhammad Aurangzeb described pensions for retired employees as a heavy burden on the government.
Addressing industrialists and businessmen at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Aurangzeb highlighted several critical economic issues and measures.
He stressed that the federal cabinet’s decision not to take salaries had not substantially alleviated the treasury’s burden.
He highlighted that the substantial expenditure reduction would be achieved through the closure of inefficient departments.
The Finance Minister also mentioned plans to reduce the policy rate this year, noting that while making emotional speeches is easy, practical ground-level work presents a challenge.
The minister outlined the government’s goal to raise the tax-to-GDP ratio to 13% within the next two to three years. He acknowledged the objections raised by small businessmen regarding new taxes, stating that these taxes were necessary as small businesses had previously not been taxed.
Aurangzeb assured that tax authorities possess comprehensive data on non-filers and instructed industrialists to avoid entertaining any Federal Board of Revenue (FBR) personnel.
Additionally, Aurangzeb noted that the caretaker government has consistently supported various initiatives, despite the industry’s struggles due to difficult economic decisions. He promised to consider the recommendations from businessmen regarding the budget.
Addressing the Independent Power Producers (IPPs) issue, Aurangzeb criticized the previous PTI government’s insufficient efforts and expressed a desire to resolve the matter. He also pointed out that 60% of the total tax revenue is allocated to the provinces, with taxes on farmhouses and large houses being imposed in consultation with provincial governments.
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