Untaxed sectors will be integrated into tax net soon: FinMin Aurangzeb

Finance Minister Muhammad Aurangzeb has announced plans to integrate untaxed sectors into the tax net, aiming to boost Pakistan's tax-to-GDP ratio to 13.5%.

In a meeting with US Ambassador to Pakistan Donald Blome, Aurangzeb outlined the government's commitment to Federal Board of Revenue (FBR) reforms, which include appointing experts to the Pakistan Revenue Automation Limited (PRAL) board.

Finance czar emphasised that the government has approved Federal Board of Revenue (FBR) reforms and is committed to increasing the tax-to-GDP ratio to 13.5%. He further stated that untaxed sectors will be integrated into the tax net.

Additionally, the Finance Minister mentioned that experts have been included in the Pakistan Revenue Automation Limited (PRAL) board as part of the FBR reforms.

While referring to the reforms as "work in progress," Aurangzeb pointed to climate change and child malnutrition as significant threats to Pakistan’s long-term development. These issues, he warned, could exacerbate inequalities and hinder economic growth and stability.

The minister stressed Pakistan’s need for global cooperation to build climate resilience and address malnutrition, calling for technical and financial support from development partners to achieve holistic development goals.

Ambassador Blome commended Pakistan's macroeconomic reforms, particularly in the taxation and energy sectors, and reaffirmed his commitment to enhancing bilateral cooperation. He also highlighted the importance of promoting high-quality US investment in Pakistan to foster economic growth.