FAISALABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has said Pakistan has been put on a right direction; however, the private sector must play its due role in complete recovery of national economy.
He was addressing the business community during third All Pakistan Chambers Presidents Conference at the Faisalabad Chamber of Commerce and Industry (FCCI) here on Saturday.
The finance minister said that he had initiated consultations with the business community to ensure open discussions on every matter before the formal announcement of upcoming budget in May-June.
Crackdown on unregulated sectors to intensify: Aurangzeb
He highlighted the dynamic role of the business community in the recovery of national economy and said that Pakistan is currently operating under the International Monetary Fund (IMF) programme which influences our economic policies.
He said that the government had a clear direction and it will keep all stockholders informed about potential policy changes over the coming years.
He also highlighted the ongoing economic reforms and said the Federal Board of Revenue (FBR) was undergoing for restructuring. The FBR would now focus exclusively on revenue collection whereas the Ministry of Finance will handle policy-making matters, he added.
He said that economic sustainability required fair taxation. However, elimination of corruption was imperative and all stakeholders must cooperate to achieve this task, he added.
The minister said that tax-to-GDP ratio in Pakistan is currently 9 to 10 %, which is insufficient for sustainable development. He said that many sectors such as agriculture and retail are not contributing adequately to the national economy. However in a landmark move, the government has introduced agricultural taxation for the first time in 75-year history of Pakistan.
He said that tax burdens should be equitably distributed as currently the salaried persons and manufacturing sector are bearing the heaviest tax load. The agricultural taxation would help in expanding the tax base besides reducing tax pressure on other sectors, he added.
He assured the business leaders that the government would impose fair taxation and introduce economic reforms which were necessary for future.
He said that the revenue and customs officials were with him to hear concerns of the business community and address the same by formulating effective strategies. The stakeholders should submit their written recommendations for further action in this regard, he added.
Earlier, President FCCI Rehan Naseem Bharara highlighted the importance of economic growth and said that Pakistan’s economy was moving in a right direction but it needed sustainable policies to avoid repeated cycles of growth and decline.
He said the FCCI had hosted All Pakistan Chambers’ Presidents Conference as a part of its Golden Jubilee celebrations for restoring confidence of the business community for economic revival of Pakistan.
He said the FCCI had become first fully digitalized chamber of the country by launching an SMS-based application which allows its members to access all services online.
The FCCI president also discussed key economic indicators and pointed out improvements in policy rates, inflation reduction and export performance.
He highlighted the potential of IT sector and said that Pakistan’s IT exports could reach $ 100 billion if the government facilitates investment inflows through legitimate financial channels.
Later, the FCCI president presented a shield to Federal Finance Minister Senator Muhammad Aurangzeb.
Former president Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Mian Muhammad Adrees and others were also present.
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