Federal Finance Minister Muhammad Aurangzeb has revealed the government’s goal to raise Pakistan’s tax-to-GDP ratio from the current 9-10% to 13% within the next three years. He stressed the need for tax reforms as a key element of the economic strategy, emphasizing the importance of aligning taxpayer income and expenditure for economic stability.
At a press conference in Islamabad, alongside Minister of State Ali Pervez and Federal Minister for Information and Broadcasting Attaullah Tarar, Aurangzeb mentioned that a tax amendment bill has already been introduced in Parliament.
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This bill aims to reduce human involvement in the Federal Board of Revenue (FBR) through technological advancements, which will minimize corruption and harassment.
Aurangzeb also highlighted ongoing structural reforms, stating that the tax-to-GDP target is expected to surpass 13.5% in three years.
He emphasized the government’s efforts to digitalize tax processes to enhance compliance and efficiency, with measures in place to boost revenue and address tax leakage. The government is focused on ensuring a fair tax burden distribution across all sectors.
Minister of State Ali Pervez Malik also addressed inflation control, noting that it is a major burden on citizens. He stated that inflation has dropped from 30-40% to around 5%, and efforts to control fiscal deficits are helping reduce its impact on the public.
Pervez Malik added that the government is collecting data on taxpayers and defaulters, identifying 190,000 individuals to bring into the tax net, aiming for wealthier individuals to contribute fairly to the economy.
