ISLAMABAD (Dunya News) – Finance Minister Muhammad Aurangzeb has made it clear that the government will not slap extra taxes on the people to make up for the revenue shortfall.
Speaking to reporters in the federal capital, the minister said that the government is fully committed to achieving the targets agreed with the International Monetary Fund (IMF). He emphasized that the tax-to-GDP ratio will be raised to 11 percent this year, as promised.
Aurangzeb pointed out that a large chunk of revenue is stuck in tax disputes pending in courts, and recovering those dues will help bridge the shortfall without piling fresh taxes on businesses or citizens.
“We will not burden the people with new taxes. Our aim is to meet the revenue targets by improving compliance and resolving outstanding cases,” he assured.
The minister also confirmed that talks with the IMF are moving in the right direction, calling the progress so far “positive”.
Pakistan secured a three-year, $7bn aid package with the IMF in July last year to stabilise the economy and promote inclusive, resilient growth.
In May this year, the IMF board approved an additional $1.4bn loan to bolster Pakistan’s resilience against climate risks and natural disasters. However, an IMF official clarified that disbursement depends on successful reviews under the Extended Fund Facility (EFF).
Govt to hold investor conference in Washington
In an interview with Bloomberg News, Finance Minister Muhammad Aurangzeb revealed that Pakistan will host an investor conference in Washington later this month.
He said the government has identified priority sectors for foreign investment, adding that there is strong appetite in those areas.
“With respect to the US, we have just kick-started that process,” he noted.