ISLAMABAD:
Finance Minister Muhammad Aurangzeb highlighted agriculture and Information Technology (IT) as the key drivers for Pakistan’s sustainable economic growth. Speaking to the media after a meeting with farmers in Kamalia, Toba Tek Singh district, he emphasized that the government couldn’t solve all of Pakistan’s issues at once and that the country relies on taxes, not charity, to function.
Aurangzeb stressed efforts to eliminate corruption and curb financial leakages, reinforcing the government’s commitment to promoting export-led growth and achieving a sustainable GDP growth rate next year. He acknowledged the challenges of an import-driven economy and the resulting dollar shortages that lead to balance of payments issues, often requiring support from the IMF.
He noted that economic growth must be centered on exports, with agriculture and IT leading the charge for development. Despite the presence of research institutions, the agriculture sector has not achieved the desired crop yields, a matter of concern for the minister.
The government has made strides in stabilizing the macroeconomy, with inflation falling to a single digit and interest rates on the decline. Aurangzeb expressed confidence that as interest rates decrease further, business conditions will improve.
Regarding tax collection, the minister acknowledged the current tax-to-GDP ratio of 9-10% and expressed plans to increase it to 13.5%. He emphasized the need to reform the taxation system, simplify processes, and reduce human intervention. He also pointed out the burden on the salaried class due to tax leakages, urging other sectors to be included in the tax net.
Aurangzeb reiterated that reforms were underway in taxation, energy, and state-owned enterprises, and stressed that the government’s role in business should be minimized. Instead, the private sector should take a more prominent role, with the government focusing on regulation to prevent monopolies. He warned that government intervention often leads to corruption, particularly through licensing.
The minister also expressed hope that energy tariffs would decrease as efforts are made to address inefficiencies in distribution companies. He reiterated the government’s commitment to engaging with stakeholders directly, rather than just working from Islamabad.
