Relief to Salaried Class Impossible When Govt Institutions Are Operating At A Loss: Aurangzeb

Finance Minister Muhammad Aurangzeb on Tuesday said the federal government was finding it very hard to give relief to the salaried class in the new budget while many state institutions were operating at a loss.

Addressing a small media talk on the second day of Eid Ul Azha from his hometown in Kamalia, he said hospitals and schools may operate on charity but a country’s economy cannot rely on it. He stressed the need for strict enforcement of tax laws and to eventually phase out tax exemptions altogether to reduce the fiscal deficit.

He also highlighted the government’s decision to maintain tax exemptions on fertilizers, seeds, and medicines to support the agricultural sector.

Aurangzeb announced plans to bring all sectors into the tax net, emphasizing the urgent need for end-to-end digitalization at the Federal Board of Revenue (FBR). He said this would help minimize human interaction, reduce corruption, and increase transparency.

He emphasized expanding the tax net beyond retailers to include various other sectors, stressing that taxation was crucial for the country’s GDP and overall economic health.

He acknowledged the public’s reluctance to engage with the FBR due to harassment and frivolous notices and promised reforms to address such issues.

In response to a query, Finance Minister said agriculture and IT sectors are independent of the International Monetary Fund (IMF) and praised freelancers for their contributions while working from home.

Aurangzeb said the government plans to cut federal expenditures to manage the fiscal deficit. He stressed the importance of privatizing loss-making state-owned enterprises (SOEs), with a particular focus on Pakistan International Airlines (PIA) which has a Rs. 622 billion liability transferred to the government. Aurangzeb described this situation as unsustainable and called for immediate privatization of all liable SOEs.

Senate Panel Calls for Tax Exemption on Mobile Apps For Freelancers to Boost Remittances

The ex-banker also announced the expected outsourcing of Karachi Airport by August as part of the privatization efforts aimed at reducing the fiscal burden on the government. He underscored the government’s focus on leveraging the private sector for national development and urged integrating tech with the agricultural sector.

He further mentioned that the recent visit to China focused on technology transfer to Pakistan rather than seeking additional investments. Visits to Chinese agricultural research universities were also part of Prime Minister Shehbaz Sharif’s itinerary during their stay.

Follow ProPakistani on Google News & scroll through your favourite content faster!

Support independent journalism

If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.

  • Then why you are giving relief to government officers (including Army officers)?. It should be impossible as well. Government has dedicated officers mess, clubs, free medical, hundreds of litres of free fuel and so many other amenities. If salary class has to sacrifice then government officers must sacrifice as well.

  • Everybody is following the same path. Nobody has the plan and intent to broaden tax net. I know people in my circle earning good amount mechanic dentrer approx equal to salary of three to four junior employee but not paying taxes. I had submitted complaint about non availability of pos and cardmachine at mutiple food outlets and retail store but no action has been taken. To increase tax an intent commitment proactive approach planing good strategy are required otherwise we will be in no where.

  • why salaried class pay for institutes which are in huge loss ? and why increase their salary as they are in loss? they are in loss due to corruption then why we support them?

  • Why can’t they compromise who is responsible for the failure of institutions and the actual reason for the loss?
    In short, we have another senseless and irresponsible finance minister.

    • Very aptly summarised, senseless, irresponsible and illiterate finance minister. What a shame so many problems and these puppets are travelling on Rolls Royces, limos, personal jets and helis. But as Mr. PM Shobaz says common man has to sacrifice. They are not the sons of lesser gods like commoners man……

  • Why are you paying IPPs in billions and local banks in billions in interest? You cannot provide relief to the sector already paying too much. Salary rates should be reverted back to 2023 or it will be a disaster for the middle-class. Start taxing your elite friends for a change.

    • My dear they won’t revert. The money to run their Rolls Royces comes form our tax money….

    • They are ok with paying billions to IPPs despite less usage

      But saying that govt institutions operate at loss.

      Govt institutions are public utilities. They don’t have profit or loss.

  • A class 2 student would have prepared a far far better budget than this guy and his incompetent to core ministry and abysmally pathetic FBR. I can bet on it….

  • Is this guy a joke ?

    Govt agencies don’t operate at loss or profit. Those are public utilities. Paid for by the tax payer.

    FM is a loser

    • No they do operate on profit loss, just that most of them are expected to sacrifice profit for public good. This does not mean they can’t or strive to make a profit.

      Also this is a misconception that government runs on taxpayer money. Its not true for any country in the whole world. That amount is so miniscule that not even a small city like Islamabad’s municipal authorities can be run on it.

      The money comes from the many for profit industries and organisations the government runs.

      • No they do not . Public utilities are not in profit or loss since they are not companies or working under a company model.

        They are govt utilities. Your post office don’t function as a company, neither does your govt hospital , or your govt schools.

        Money comes from taxes paid for by the tax payer through direct and indirect taxes

  • Ask this aurangzeb to Tax armed forces as they operate at a loss since the creation of Pakistan

    Funny how all sectors earn revenue except armed forces. Yet they get budget increase

    • Dear it’s an endless debate, no logic no wisdom behind any decision. Alas ours economy is at the bottom, perhaps 700th at the bottom. Don’t worry there is no risk of loosing this coveted place. Long live the king….

  • They are enjoying life on our tax money … government has increased their budget by 28% … take away free cars, electricity, AC, travel from these government ppl n than ask ppl to pay tax … they dun want to cut ny of their perks . This country is doomed

  • Senior citizen aged 70 and plus household totally private with no pension no any source of income must be in consideration for relief in tax year 24-25

  • Reporters are responsible for his statements, who ask them to media take minister was heavily drunk on second eid day.

  • salary person jo already tax net me phansa hua hy usi ki gardan patli hy dabaoo khoob dabaoo. mulk ka poora booj inhi ky kandhey per daldo.

  • Reduce the interest rate to 7%, where it ought to be and everything will fall in place. But then how would we feed the vultures being kept in SBP, Commercial banks and the Ministry of Finances

  • That son of a birch will always justify just like all previous ones cause they loose nothing and after drastic impacts upcoming.ones will blame him cause thats.the routine cycle This country people not these bastards but unfortunately people are scared causing these and others to easily manipulate us. He is just a pawn like all previous ones so don’t expect any good from.him

  • I agree with Finance Minister that Financial situation of the country is bleak. We need funds to meet expenditures. It is crisis situation. A kind of emergency. Govt can also cut down perks and salaries of Presidents, Prime Ministers, Governors, parliamentarians, judges, high officials of establishments, bureaucratese( present & retired). Abolish unnecessary ministries. Many more acts that can bring confidence in the salaried class and organized sectors that elites of the countries are tightening their belts. It can also undo the impression that taxes of salaried class are raised to pay the perks and salaries of elites.

  • This is Pakistan, unfortunately, nothing is going to change. The white collar always has to suffer. I don’t see any improvement in the next century. 35% tax in salary and getting no relief in return. Salaried individuals are sacrificing still suffering and committing suicide, and killing their families. But there is no empathy in leaders.

  • What a shame that Textile sector paid 100 billion tax and salaried class paid 385 billions. Yes, we are earning so they can enjoy lavish life on our money. Highly disappointed and no hope for change.

  • Get Alerts

    Follow ProPakistani to get latest news and updates.

    ProPakistani Community

    Join the groups below to get latest news and updates.