Minister Aurangzeb Engages Business Community on Budget Initiatives

The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, recently engaged with the business community to discuss the federal budget for the fiscal year 2024-25. During an interactive session organized by the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Minister Aurangzeb highlighted key initiatives and concerns related to the budget.

One of the primary focuses of the government is to increase the tax to GDP ratio to 13% within the next two to three years. Minister Aurangzeb emphasized the importance of this target and discussed the growth in foreign exchange reserves, indicating positive economic developments.

Addressing the concerns raised by business leaders, the minister acknowledged the lack of trust in the Federal Board of Revenue (FBR) and emphasized the need for restructuring to enhance its credibility. He mentioned the FBR's efforts to digitize its system, aiming to minimize human intervention and improve efficiency while tackling system leakages.

Minister Aurangzeb also hinted at a potential decrease in the policy rate for the current year, demonstrating the government's commitment to supporting the private sector. He underscored the significance of resolving issues faced by small and medium enterprises (SMEs) and highlighted the impact of challenges faced by distribution companies on electricity prices.

Minister of State for Finance and Energy, Ali Pervaiz Malik, echoed the government's dedication to providing relief to the business community once fiscal space is created. He mentioned the identification of 4.5 million new taxpayers and ongoing assessments by the FBR, attributing the reduction in inflation from 40% to 12% to government efforts.

The government's engagement with the business community reflects a commitment to addressing concerns and fostering economic growth. The initiatives discussed by Minister Aurangzeb and Minister Malik aim to create a more conducive environment for businesses and investors, signaling a positive outlook for the future of Pakistan's economy.