No Relief for Salaried Class as Government Institutions Operate at a Loss: Aurangzeb
Finance Minister Muhammad Aurangzeb stated on Tuesday that the federal government is struggling to provide relief to the salaried class in the new budget due to many state institutions operating at a loss.
Speaking to the media on the second day of Eid Ul Azha from his hometown in Kamalia, he emphasized that while hospitals and schools can run on charity, a country’s economy cannot. He stressed the need for strict enforcement of tax laws and the eventual phasing out of tax exemptions to reduce the fiscal deficit.
Aurangzeb highlighted the government’s decision to maintain tax exemptions on fertilizers, seeds, and medicines to support the agricultural sector.
He announced plans to bring all sectors into the tax net and emphasized the urgent need for complete digitalization at the Federal Board of Revenue (FBR). This move aims to minimize human interaction, reduce corruption, and increase transparency.
Expanding the tax net to include various sectors beyond retailers, he stressed that taxation is 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, promising reforms to address these issues.
In response to a query, the Finance Minister stated that the agriculture and IT sectors are independent of the International Monetary Fund (IMF) and praised freelancers for their contributions while working from home.
Aurangzeb mentioned that the government plans to cut federal expenditures to manage the fiscal deficit and highlighted the importance of privatizing loss-making state-owned enterprises (SOEs). He particularly focused on Pakistan International Airlines (PIA), which has a Rs. 622 billion liability transferred to the government, describing this situation as unsustainable and calling for immediate privatization of all liable SOEs.
He also announced the expected outsourcing of Karachi Airport by August as part of the privatization efforts to reduce the fiscal burden on the government. Aurangzeb underscored the government’s focus on leveraging the private sector for national development and integrating technology 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.
