Islamabad: Minister of State for Finance Bilal Azhar Kayani said Pakistan’s IMF program had limited the federal government’s ability to provide tax relief, despite recognising pressure on salaried individuals and taxpayers.
Kayani made the remarks at a pre-budget seminar hosted by the Rawalpindi Chamber of Commerce and Industry. He said the government understood the need to reduce the tax burden, but fiscal commitments under the International Monetary Fund program restricted available space.
The minister said higher revenues had come through tax enforcement measures during the current fiscal year. He added that the government generated Rs. 803 billion through enforcement efforts in the previous financial year.
Kayani also said the privatisation of Pakistan International Airlines had reduced pressure on the national exchequer. He identified the power sector as the next privatisation target, citing line losses and the continued burden on public finances.
Read: Salaried Class Tax Hits Rs605.9bn Before Budget
The minister said the federal government had received budget proposals from the business community. He added that officials remained in contact with chambers of commerce across Pakistan before the next budget.
Kayani said Pakistan needed to improve its existing business model to attract more investment. He linked future investment prospects to reforms aimed at easing pressure on the economy and public finances.
