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Minister for Finance and Revenue Muhammad Aurangzeb has said that the government’s ongoing negotiations with the International Monetary Fund (IMF) are heading in the “right direction”.
Expressing his satisfaction over the pace of talks with the Washington-based lender, the finance czar said that negotiations with the global lending institution are progressing ‘positively’.
Speaking to the media in Islamabad on Wednesday, he said that the government is confident of boosting Pakistan’s tax-to-GDP ratio to 11%.
Mentioning several pending tax-related cases in courts, he hoped that such cases would increase the Federal Board of Revenue’s (FBR) collections.
The FBR faced a shortfall of Rs1.2 trillion against its original target of Rs12.97 trillion for fiscal year 2024-25, despite the imposition of Rs1.3 trillion in additional taxes.
The board ultimately collected Rs11.74 trillion after two downward revisions, with officials attributing the gap to unrealised recoveries of Rs250 billion from pending court cases.
Aurangzeb, however, said that the government was not considering taking additional tax measures.
“We are not immediately taking additional tax measures,” he said.
In an earlier briefing to the Senate Standing Committee on Finance and Revenue, Aurangzeb said that the Finance Division would take over the duty to prepare the Finance Bill for the next fiscal year.
The finance minister said that the Tax Policy Office (TPO) at the Finance Division will replace the FBR in the making of the next Finance Bill.
Govt planning investor conference in US
In a separate interview with Bloomberg News, Aurangzeb said that Pakistan was planning an investor conference in Washington later this month.
“The sectors are very clear where we seek their investment and where we see a clear investment appetite,” he added.
“With respect to the US, as of right now, you’ve just kick-started that process.”
