In a critical address at the third All Pakistan Chambers Presidents Conference, Finance Minister Senator Muhammad Aurangzeb emphasized the pivotal role of the private sector in driving Pakistan’s economic recovery. Held at the Faisalabad Chamber of Commerce and Industry (FCCI) on Saturday, the event saw key stakeholders from the business community come together to discuss the future of Pakistan’s economy and the government’s reform agenda.
Aurangzeb began his remarks by highlighting the importance of the business sector’s contribution to sustainable economic growth, stating that while Pakistan is progressing in the right direction, the country’s economic future largely depends on the private sector’s active involvement. He reiterated that the government remains committed to implementing vital economic reforms, but these changes would only succeed if the private sector played a central role in the recovery process.
The finance minister also touched on Pakistan’s ongoing engagement with the International Monetary Fund (IMF), acknowledging the IMF’s significant influence on the country’s policies. He explained that Pakistan’s current economic strategies were being shaped under the framework of the IMF program, urging that clear and consistent communication with the private sector would be essential for ensuring smooth policy transitions and addressing future economic challenges.
A major highlight of Aurangzeb’s speech was the announcement of a comprehensive restructuring of the Federal Board of Revenue (FBR). The minister revealed that the FBR would now solely focus on revenue collection, while the Ministry of Finance would handle policymaking. This restructuring aims to streamline the tax system and improve efficiency in revenue generation. In his address, Aurangzeb stressed the need for fair and effective taxation, calling for enhanced measures to combat corruption and urging businesses to assist in broadening the tax base to ensure a more equitable system.
Despite efforts to improve tax collection, the finance minister pointed out that Pakistan’s tax-to-GDP ratio remains low at 9-10%, a level that is insufficient to meet the country’s developmental needs. He noted that the manufacturing and salaried sectors bear the heaviest tax burdens, while sectors like agriculture and retail remain significantly under-taxed. To address this disparity, the government has introduced agricultural taxation for the first time in Pakistan’s history, a groundbreaking move that aims to bring more sectors into the formal tax framework.
Aurangzeb emphasized that economic reforms and tax policies would be designed with the goal of fostering business growth and ensuring fairness across all sectors. He encouraged business leaders and stakeholders to submit written recommendations, assuring them that their concerns would be taken into account and addressed through effective policies and strategies.
The minister also directed revenue and customs officials present at the event to engage directly with the business community, fostering better collaboration between the government and private enterprises.
Earlier in the event, FCCI President Rehan Naseem Bharara also spoke about the importance of sustainable economic policies and commended the government for improvements in key economic indicators such as inflation reduction, policy rates, and export performance. He specifically highlighted Pakistan’s untapped potential in the information technology (IT) sector, suggesting that with the right investment and support, Pakistan’s IT exports could reach $100 billion in the coming years.
The conference, which was part of FCCI’s Golden Jubilee celebrations, concluded on a positive note, with the finance minister being presented with a shield for his contributions. Business leaders, including former FPCCI President Mian Muhammad Adrees, were also in attendance, reinforcing the collective commitment to restoring business confidence and driving Pakistan’s economic recovery.
Aurangzeb’s address underscored the importance of collaboration between the government and private sector, positioning the latter as the key driver of economic recovery and long-term growth.