Finance Minister Muhammad Aurangzeb has announced the government’s decision to abolish the concept of ‘non-filers’. Speaking to the media in Islamabad, he acknowledged the financial strain experienced by the salaried class due to new taxes and pledged to offer relief once feasible. He expressed confidence that ongoing government initiatives would render the categorisation of ‘non-filers’ obsolete.
Highlighting key economic improvements, Aurangzeb stated that the country’s foreign exchange reserves now stand at $9 billion and that inflation has reduced from 38% to 12%. The repatriation of dividends to international companies is complete, which is crucial for attracting foreign direct investment.
The finance minister revealed that the World Bank has approved $1 billion for the Dasu project, and the International Finance Corporation (IFC) has sanctioned $400 million for PTCL, to be received in the next fiscal year. The Federal Board of Revenue (FBR) achieved tax collections of Rs 9.3 trillion, reflecting a 30% growth. Aurangzeb emphasized the FBR’s complete digitisation to enhance efficiency and curb corruption.
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Aurangzeb assured that all tax refunds up to June 30, 2024, amounting to over Rs 50 billion, would be disbursed within the next two to three days, along with the Duty Drawback of Local Taxes and Levies (DLTL) refunds. He mentioned that 42,000 retailers are now registered and will be taxed from July 1, reiterating his stance on eliminating the ‘non-filers’ concept.
Addressing inflation concerns, the finance minister empathised with the public’s stress regarding additional taxes. He emphasised the government’s commitment to reducing the burden on common people and businesses by curbing leakages and improving the management system.
Aurangzeb also announced a new pension system for civil employees effective immediately, with the military to follow next year. He expressed optimism about the upcoming agreement with the IMF, expected in July, stating, “The IMF program is our assurance in terms of macro stability. We are taking it forward; it is inevitable. I’m very optimistic that we’ll be able to take it through the finish line for an Extended Fund Programme which is going to be larger and longer in nature.”
The federal government adopted a Rs 18.9 trillion budget with tax-raising measures to secure a new IMF bailout after almost defaulting last year. The finance minister concluded by stating that the recent resolution on Pakistan in the US Congress is unrelated to the IMF program and that discussions with IMF officials during his US visit were satisfactory. The final IMF program will span three years and be valued between $6 to $8 billion.
