The Finance Minister, Muhammad Aurangzeb, conveyed his optimism to the public on Sunday, reassuring the country that Pakistan is on track to secure an extended loan programme with the International Monetary Fund (IMF). He highlighted that the agreements with the Fund can greatly contribute to macroeconomic stability, which is essential for the nation’s financial well-being.
Addressing the media in Islamabad at the conclusion of the fiscal year 2023-24, the finance minister, alongside Prime Minister Shehbaz Sharif, expressed hopeful sentiments regarding the upcoming IMF programme. He particularly emphasised that both he and the prime minister anticipate that this will be the final IMF program for the nation, exuding confidence in the economic trajectory of the country.
Furthermore, President Asif Ali Zardari provided his assent to the tax-heavy Finance Bill 2024 for the new fiscal year, indicating the government’s commitment to financial transparency and responsibility. The recent budget announcement was met with criticism from opposition parties, particularly the PTI, and its coalition ally PPP. The government extended exemptions in specific sectors and introduced new tax measures to meet IMF criteria, aiming to generate additional revenue in the upcoming fiscal year.
The finance minister addressed concerns over the impact of the tax-heavy budget on the public, acknowledging the anxiety and explaining that measures are being devised to alleviate the burden on certain segments of society as the nation moves forward. Additionally, he highlighted the need to bring retailers into the tax net and mentioned various strategies to simplify the tax collection process and ensure compliance.
Aurangzeb underscored the government’s commitment to raising the tax-to-GDP ratio, initiating energy sector reforms, and implementing the privatisation of state-owned enterprises. He expressed his goal of reaching a tax-to-GDP ratio of 13% within the next three years, viewing it as a crucial step towards economic stability and growth for the nation.
The finance minister’s emphasis on macrostability and his assurances regarding the progress of discussions with the IMF reflect the government’s determination to ensure the nation’s financial prosperity. He also articulated the government’s focus on addressing leakages, corruption, and inefficiencies in the tax system to foster greater financial transparency and accountability.
In addition, Aurangzeb elaborated on the government’s efforts to engage with provincial authorities, highlighting discussions on revenue and expenses to enhance fiscal sustainability across the country. He stressed the importance of cooperation between federal and provincial governments to achieve financial stability and drive economic progress.
Overall, the finance minister’s comprehensive briefing and reassurances to the public underscore the government’s commitment to financial responsibility, transparency, and sustainable economic growth. The ongoing efforts to secure an extended IMF programme and implement strategic financial reforms demonstrate the government’s dedication to achieving macroeconomic stability and bolstering investor confidence in Pakistan’s economy.