KAMALIA: Federal Finance Minister Senator Muhammad Aurangzeb on Tuesday reiterated the government’s commitment to reduce expenditures to strengthen the country’s economy, ARY News reported.
Addressing a press conference in his hometown, Kamalia, the minister said the federal government would shut down parallel ministries or departments that have been devolved to provinces.
This move is expected to significantly reduce expenditure and improve efficiency, he said, adding Prime Minister Shehbaz Sharif had already announced the closure of Pakistan Public Works Department.
The minister went onto say that the government will privatise state-owned enterprises (SOEs), which have been a significant drain on the national exchequer.
“If PIA was privatized 10 years ago, there would not have been so much loss,” he said.
The minister also announced that airport outsourcing is being completed, with Karachi airport set to be handed over to the private sector by July or August this year, to be followed by Lahore airport.
On revenue side, the minister emphasized the need to increase the tax-to-GDP ratio from 9.5% to 13% over the next three years, stressing that taxes are essential for running the country.
To achieve this goal, the government has announced revenue measures, including bringing the non-taxable sector into the tax base, gradually eliminating tax exemptions worth Rs3.9 trillion, and rephrasing policies in areas like health and agriculture.
The government is also focusing on compliance, plugging leakages in the system, and implementing an end-to-end digitization system to reduce human intervention, increase transparency, and end corruption.
“Sales tax automation is a top priority of the incumbent government,” he remarked.
The minister assured that the prime minister’s recent visit to China was focused on technology transfer, industry development, and enhancing exports, rather than seeking aid.
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