Finance Minister Muhammad Aurangzeb said today he was quite optimistic that Pakistan will get a new and final bailout from the International Monetary Fund (IMF).
Addressing media persons in Islamabad on Sunday, Aurangzeb said the government will enter a long-term agreement with the IMF and hinted at future economic policies focusing on export growth rather than export taxes.
The budget was made in consultation with the Washington-based lender, he added.
Finance Minister announced immediate tax refunds for exporters and revealed plans for increased exports under CPEC-2.
Regarding the Rs. 10/per liter increase in the petroleum development levy on petrol and high-speed diesel in federal budget 2024-25, he said the PDL will not be immediately increased to Rs. 70 per liter tomorrow.
He noted that the World Bank has approved a $1 billion financing package for Dasu and emphasized the government’s commitment to achieving micro-economic stability through similar initiatives.
Aurangzeb highlighted the Federal Board of Revenue’s (FBR) successful attainment of its targets, including a 13 percent tax-to-GDP ratio. He outlined reforms in the power and petroleum sectors which would help curb losses in State-Owned Enterprises (SOEs) to create fiscal space.
Aurangzeb underscored the ongoing digitization efforts within the FBR to reduce theft and corruption. The complete digitization of FBR processes would help streamline operations, enhance transparency, and address systemic inefficiencies, he added.
Aurangzeb also announced that FBR will of taxation for 42,000 retailers registered under the Tajir Dost scheme starting tomorrow.
The Finance Minister mentioned recent tax adjustments affecting the salaried class and industries. He disclosed a tax exemption of Rs. 3.9 trillion, part of Pakistan’s commitments under the IMF program.
Aurangzeb briefly discussed efforts to broaden the tax base, saying that the budget introduced measures targeting the supply side while reducing allocations to the Public Sector Development Program (PSDP). The government will increasingly rely on public-private partnerships instead.
Starting tomorrow, a new pension scheme will be implemented, he added.
