Muhammad Aurangzeb, the Federal Minister of Finance, emphasized that while schools and hospitals can operate on donations, a country is run through taxes.
Speaking to the media in Kamaliya, Aurangzeb expressed the need to reduce tax exemptions and expand the tax net gradually. Starting in July, the retail sector would be included in the tax net, noting that existing laws were not effectively enforced for tax collection.
Aurangzeb highlighted the government’s move towards digitalizing taxes to reduce corruption, stating that the GDP depends heavily on taxes, which are essential for running all systems in the country and improving the national economy.
Aurangzeb also addressed government spending, advocating for reducing obsolete federal ministries to cut costs. He mentioned ongoing considerations to reduce government expenditure, with significant measures to be disclosed in one and a half months. He also announced plans for outsourcing operations at Karachi Airport in July and suggested privatizing Lahore Airport to propel the country forward.
The Minister pointed out that for the country to receive relief, it must reduce deficits and the governmental burden. He stressed that agriculture and IT have no links to the IMF or similar entities, and advancements in these sectors will boost the national economy. Aurangzeb discussed providing interest-free loans to farmers, which could revolutionize agriculture and noted that recent discussions with China focused on acquiring technology rather than financial aid.
Furthermore, Aurangzeb remarked that the government does not need to provide jobs as the IT sector generates significant revenue, amounting to 3.5 billion dollars. He assured that subsidies on fertilizers and seeds would continue.
Looking ahead, Aurangzeb revealed plans to introduce new projects to develop the agriculture and IT sectors, which are vital for economic improvement. He lamented that if PIA had been privatized ten years earlier, significant losses could have been avoided and emphasized the need to curb theft and corruption in every sector.
Lastly, Aurangzeb disclosed plans to restructure DISCOs and move them to the private sector. Private individuals will become chairpersons of these companies.
