Islamabad, Oct 28: Government Aims at Non-Filers with New Property Restrictions. Finance Minister Muhammad Aurangzeb has signaled a stricter attitude on tax compliance by announcing new limitations that prevent non-filers from buying cars and homes, a move intended to increase Pakistan’s tax collection.
The government intends to do away with the non-filer category, Aurangzeb said at a press conference in Washington. He pointed out that this change is a component of a larger plan to stabilize Pakistan’s economy and raise the country’s tax-to-GDP ratio, which is now at 9%. In order to ensure long-term economic stability, the government wants to increase this percentage to 13% in the near future.
Aurangzeb emphasized the importance of making tough financial decisions, noting that recent initiatives have shown encouraging outcomes. The policy rate and inflation, two important economic indicators, have improved, resulting in increased macroeconomic stability.
He noted that major rating agencies have given Pakistan’s economic orientation a favorable grade, indicating continued progress in ensuring budgetary health. Aurangzeb expressed confidence that Pakistan’s current IMF program might be its final one during talks with World Bank and International Monetary Fund (IMF) representatives in the United States.
He also revealed that the World Bank has indicated interest in providing grants to Pakistan instead of conventional loans, highlighting the nation’s initiatives to lessen its dependency on foreign debt. He noted that major rating agencies have given Pakistan’s economic orientation a favorable grade, indicating continued progress in ensuring budgetary health.
Aurangzeb expressed confidence that Pakistan’s current IMF program might be its final one during talks with World Bank and International Monetary Fund (IMF) representatives in the United States. He also revealed that the World Bank has indicated interest in providing grants to Pakistan instead of conventional loans, highlighting the nation’s initiatives to lessen its dependency on foreign debt.
With the intention of expanding its currency swap facility from the current 30 billion yuan ($4.3 billion) to 40 billion yuan, or roughly $5.7 billion in total, Pakistan has asked China for an extra 10 billion yuan ($1.4 billion).
China recently extended Pakistan’s current facility for an additional three years, which prompted this request. Beijing’s consent is necessary for the new facility, though, as earlier requests for higher debt limits were turned down. This financing decision emphasizes how Pakistan continues to require outside assistance as it implements economic reforms.
These adjustments coincide with Pakistan’s efforts to diversify its economy and draw in foreign capital, with the American business community showing increasing interest, according to Aurangzeb.
