ISLAMABAD—Finance Minister Muhammad Aurangzeb on Wednesday expressed satisfaction with the progress of the government’s negotiations with the International Monetary Fund (IMF), describing the talks as moving forward “positively.”
Speaking to the media in Islamabad, the finance minister expressed confidence that the government would succeed in boosting Pakistan’s tax-to-GDP ratio to 11%.
Tax Policy and FBR Performance
Aurangzeb addressed the issue of the Federal Board of Revenue’s (FBR) performance, acknowledging that the FBR faced a shortfall of Rs1.2 trillion against its original target of Rs12.97 trillion for fiscal year 2024-25. The FBR ultimately collected Rs11.74 trillion after two downward revisions.
Officials previously attributed the shortfall, in part, to unrealized recoveries of Rs250 billion tied up in pending court cases. Aurangzeb expressed hope that resolving these pending tax-related cases in courts would significantly boost the FBR’s collections.
Crucially, the finance minister assured the public that the government was “not immediately taking additional tax measures.”
Institutional Reforms and Investor Outreach
In a move to reform the tax legislative process, Aurangzeb announced that the Finance Division would take over the responsibility of preparing the Finance Bill for the next fiscal year. This duty will be handled by the Tax Policy Office (TPO) at the Finance Division, replacing the FBR in this key role.
In a separate interview with Bloomberg News, Minister Aurangzeb revealed that Pakistan is planning an investor conference in Washington later this month. He emphasized that the government is focusing on sectors where there is clear investment appetite, adding: “With respect to the US, as of right now, you’ve just kick-started that process.”
