https://twitter.com/home https://www.facebook.com/Shabbir.Hussain191By Shabbir Hussain
FAISALABAD, Jul 4 (Alliance News): Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Friday said Pakistan must adopt a fully digitalised taxation system to eliminate revenue leakages, improve tax collection and simplify compliance for taxpayers.
Addressing the business community at the Faisalabad Chamber of Commerce and Industry (FCCI), the minister said preparations for the 2027-28 federal budget had already begun, describing the post-budget consultations as the first step in the process.
He said the Finance Division would focus on budget formulation, while the Federal Board of Revenue (FBR) would remain responsible for tax administration and collection.
Emphasising the role of the private sector in driving economic growth, Aurangzeb said the policy rate had been reduced from 22 percent to 11.5 percent and could decline further if regional tensions, particularly the Iran conflict, eased. He added that exporters would receive additional incentives in the next federal budget.
The minister said the government had removed cross-subsidies in the power sector to help reduce electricity tariffs. He also noted that advance tax and super tax had been abolished following consultations with stakeholders.
Highlighting the performance of Pakistan’s information technology sector, Aurangzeb said IT exports had reached $4.5 billion, adding that the government was working to create a stronger ecosystem for sustained growth.
He said the construction sector was also being encouraged, although speculative trading through property files would not be permitted.
The finance minister said the integration of databases maintained by NADRA and the FBR would improve transparency and curb tax leakages. He pointed to the successful digitalisation of the sugar sector, which had generated an additional Rs60 billion in sales tax revenue.
He announced that a new Medium-Term Tax Strategy for small and medium enterprises (SMEs) would provide significant tariff relief and revealed that regulatory duty and advance tax on agricultural machinery imports had been abolished to support the farming sector.
Aurangzeb also urged the business community to support efforts to address Pakistan’s rapid population growth, describing it as a major challenge to sustainable development.
He reaffirmed that national security would remain a top priority while expressing optimism that regional trade could improve if tensions in the region subsided.
The minister said the government was also pursuing tariff relief from the United States to enhance Pakistan’s exports.
He directed officials to engage with the National Tariff Commission on imposing anti-dumping duties where imports were harming domestic industries and assured stakeholders that business representatives would be consulted throughout the process.
He further pledged to discuss with the Governor of the State Bank of Pakistan the creation of a dedicated financing window for SMEs to improve their access to credit.
Earlier, FCCI President Farooq Yousaf Sheikh welcomed the minister and said many of the chamber’s budget proposals had been accepted, while discussions on remaining issues were continuing.
He described the government and business community as partners in economic development and welcomed the broader consultation process adopted during this year’s budget.
Farooq said Pakistan had the potential to increase exports from $60 billion to $100 billion, provided industries were supplied with regionally competitive electricity and utility rates.
He called for stable long-term economic policies, reduced dependence on the International Monetary Fund (IMF), and stronger support for exporters.
He also invited the finance minister to attend the Faisalabad Expo, scheduled to be held at the Lahore Expo Centre from July 24 to 26, and urged the government to establish a dedicated expo centre in Faisalabad.
Following the meeting, Senator Aurangzeb inaugurated the Faisalabad Expo through a ribbon-cutting ceremony, signed the FCCI Visitors’ Book and received a commemorative shield from the chamber.
