Finance Minister Muhammad Aurangzeb announced on Tuesday that the Pakistani government is committed to reducing its expenditures and is evaluating its budget allocations. Speaking to the media in Kamalia, Aurangzeb emphasized the importance of austerity measures and promised that the public would be informed of these efforts within six weeks.
Aurangzeb suggested that ministries overseeing devolved subjects should be dissolved to streamline government operations. He highlighted the necessity of tax revenue for national administration, stating that while schools and hospitals can operate on charity, running a country requires tax collection. He also mentioned the need to phase out tax amnesty schemes gradually.
The finance minister announced plans to widen the tax net to include more sectors, with an emphasis on retailers starting from July. He noted that approximately 31,000 to 32,000 retailers are currently registered with the government. Criticizing the Federal Board of Revenue (FBR), Aurangzeb asserted that existing tax collection laws are not being enforced effectively and suggested that digitizing the tax system would reduce corruption.
Aurangzeb highlighted the importance of privatizing loss-making state enterprises. He revealed that the outsourcing of Karachi airport would be finalized in July, following directives from Prime Minister Shehbaz Sharif to privatize Lahore airport as well. He lamented that it would have been more beneficial if Pakistan International Airlines (PIA) had been privatized a decade ago, asserting that privatization is essential for national progress and reducing government burdens.
Regarding employment, Aurangzeb claimed that there is no need for the government to provide jobs since children are earning from home, particularly in the IT sector, which generates $3.5 billion in revenue. He emphasized that the IT and agricultural sectors have significant potential to boost the country’s economy and clarified that International Monetary Fund (IMF) conditions do not impact these sectors.
Aurangzeb also highlighted Prime Minister Shehbaz’s recent visit to China, noting that the visit aimed to seek technology, not funds, from China, described as Pakistan’s “iron brother.”