Finance Minister Muhammad Aurangzeb on Wednesday ruled out any additional tax measures, expressing confidence that pending tax-related court cases could yield significant recoveries.
Speaking to reporters at Parliament House, Aurangzeb said Pakistan’s ongoing negotiations with the International Monetary Fund (IMF) were making “positive progress,” with discussions so far remaining constructive.
“We are committed to bringing the tax-to-GDP ratio to 11%,” he added.
The minister stressed that Pakistan’s economy had achieved “macroeconomic stability,” citing Tuesday’s Eurobond repayment as proof of fiscal discipline.
“There is always speculation, but the economy is moving in the right direction,” he told the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla.
Aurangzeb further said that talks with China on the issuance of Panda Bonds were advancing smoothly.
“We expect to issue $250 million worth of Panda Bonds by the end of November as part of a billion-dollar investment plan,” he said.
On institutional reforms, the finance minister informed the committee that tax policy has now been shifted out of the Federal Board of Revenue (FBR) to the Finance Division.
The upcoming federal budget, he clarified, will be formulated by the newly established Tax Policy Office instead of the FBR.
“Prime Minister Shehbaz Sharif is personally monitoring the FBR’s transformation, receiving weekly and monthly progress reports,” Aurangzeb said, adding that hiring for the Tax Policy Office was nearly complete and an advisory board including parliamentarians and private sector representatives will be formed soon.