Tax base needs to be widened through reforms: Asad Umar

Increasing exports to China is also on the agenda

KARACHI: Finance Minister Asad Umar on Thursday said reforms are needed to improve the taxation system in the country and stressed that a wider tax base is vital to improve the national economy.

Addressing a gathering via video link, the minister said the China-Pakistan Economic Corridor (CPEC) is an expansive project and many projects are linked to it, adding that Pakistan could benefit from China’s experience.



“Improving the tax system is not rocket science, only reforms are needed,” Umar said. “Widening the tax net is vital to take forward the country's economy. Necessary reforms will be introduced for the purpose,” he added.

The minister said that there were vast opportunities of investment in the country's different sectors, including in information technology. He added that Pakistan could double its exports to China by pursuing “the right kind of policies”.

Pakistan still plans to seek a bailout from the International Monetary Fund (IMF) despite Saudi Arabia agreeing to offer a $6 billion rescue package.

“Yes, we are going ahead into programme negotiations with IMF in the first week of November,” Pakistan’s finance ministry spokesman Noor Ahmed told Reuters in a text message.



Islamabad earlier announced Saudi Arabia had agreed to give Pakistan $3 billion in foreign currency support for a year and a further loan worth up to $3 billion in deferred payments for oil imports to help stave off a current account crisis.

The Pakistan Stock Exchange index shot up 3.3% in early trading on the news of the Saudi help. Prime Minister Imran Khan said  Pakistan was seeking help from “friendly nations”, which is usually a reference to close allies Saudi Arabia and China, to go with any IMF programme.

Imran is travelling to China today, where he is expected to seek further assistance.