Finance Minister Muhammad Aurangzeb revealed on Thursday that the government is facing significant pressure from various sectors regarding the implementation of newly announced taxes.
"Everyone wants not to be taxed," Aurangzeb stated during a meeting of the National Assembly's Standing Committee on Finance, chaired by Syed Naveed Qamar.
During the briefing, Aurangzeb provided an overview of the economic landscape, noting that the last fiscal year witnessed positive economic indicators. "Foreign exchange reserves exceeded $9 billion, and there was a gradual decline in the inflation rate," he stated.
However, the Finance Minister acknowledged that the delay in the International Monetary Fund (IMF) program in 2023 had led to currency instability. Despite this, he mentioned that the disbursement of profits and dividends to foreign companies has resumed owing to improved economic conditions.
"Securing funds from other institutions, thanks to the IMF programme, is now underway," he added.
In a significant development, the World Bank has approved $1 billion in funding for the Dasu Dam project. Aurangzeb emphasized that no artificial controls are in place, imports face no restrictions, and speculative assumptions regarding the dollar's value have been dispelled.
"The dollar's value will remain stable," Aurangzeb assured.
"The speculation that the dollar would reach Rs300 or Rs400 is now baseless. We've imposed taxes on builders and developers in the real estate sector and initiated the registration of retailers. Positive discussions have been held with agriculture ministers from all four provinces regarding income tax."
Aurangzeb informed the committee that a contributory pension system for civil servants commenced on July 1, 2024, and a similar system for the armed forces is slated to begin on July 1, 2025. He urged the armed forces to reevaluate their service structure and disclosed that five ministries would be dissolved over the next year.
