Islamabad: Federal Finance Minister Muhammad Aurangzeb has said that tough but necessary decisions will have to be taken to put Pakistan on the path of economic development, in which the first step is to recognize real problems such as taxes and energy prices.
Addressing the Pakistan Policy Dialogue, he said that the government’s focus is on reducing business costs and making the duty system more effective. According to him, for the first time, duties are being reduced on raw materials, which will boost industrial production and exports.
Muhammad Aurangzeb said that the aim of reducing tariffs is not only to increase trade but also to reduce the burden on the national exchequer. He said that remittances last year were $38 billion, while this year this amount is expected to reach $41 billion.
The Finance Minister said that tax policy has been taken out of the FBR and handed over to the Finance Division so that the policy-making and collection systems can be separated. According to him, the FBR will now focus only on revenue collection.
He added that by June, all government payments will be made under the digital system, which will improve transparency and monitoring.
According to economic experts, tariff rationalization can play an important role in moving Pakistan towards an export-oriented economy. Experts say that if reforms continue, Pakistan can get a new economic identity in the region.
Muhammad Aurangzeb said that the current reforms can be a source of economic transformation for Pakistan on the pattern of the East Asia Movement.
