Islamabad, Feb 23: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has underscored the vital role of the private sector in driving Pakistan’s economic recovery, stating that while the country is on the right trajectory, sustainable growth hinges on business sector participation.
Speaking at the third All Pakistan Chambers Presidents Conference at the Faisalabad Chamber of Commerce and Industry (FCCI), he reassured business leaders of the government’s commitment to economic reforms and inclusive policymaking ahead of the upcoming budget.
Acknowledging the influence of the International Monetary Fund (IMF) program on current economic policies, Aurangzeb emphasized the need for transparency and active engagement with the private sector. He announced a major restructuring of the Federal Board of Revenue (FBR), shifting its focus solely to revenue collection while delegating policymaking responsibilities to the Ministry of Finance. Stressing the importance of fair taxation, he called for stronger measures against corruption and urged businesses to cooperate in expanding the tax base.
Pakistan’s tax-to-GDP ratio remains critically low at 9-10%, with a disproportionate burden on the manufacturing and salaried sectors, while agriculture and retail contribute significantly less. To address this imbalance, the government has introduced agricultural taxation for the first time in Pakistan’s history, marking a significant shift in the country’s fiscal policy. Aurangzeb assured business leaders that reforms and tax policies would be designed to foster growth and equity, inviting stakeholders to submit written recommendations for consideration.
The event also saw discussions on broader economic indicators. FCCI President Rehan Naseem Bharara highlighted improvements in inflation control, policy rates, and export performance, expressing optimism about Pakistan’s economic outlook. He particularly emphasized the country’s potential in the IT sector, arguing that with proper investment and regulatory support, IT exports could reach $100 billion.
As part of FCCI’s Golden Jubilee celebrations, the conference aimed to rebuild business confidence in Pakistan’s economic future. Revenue and customs officials were instructed to maintain direct engagement with the business community to address concerns effectively. The event concluded with a shield presentation to the finance minister, attended by leading business figures, including former FPCCI President Mian Muhammad Adrees.
