No harassment in tax recovery, says FinMin

Aurangzeb reveals non-filers will not be able to open a bank account or buy a property

ISLAMABAD:

Finance Minister Muhammad Aurangzeb assured that authorities would not harass anyone for tax recovery, emphasizing the need for new legislation to enforce restrictions on those not filing tax returns, according to a statement received on Sunday.

Speaking at a press conference in Washington, the minister described his meetings with officials from the International Monetary Fund (IMF), World Bank, and others as positive. He added that the Pakistani diaspora in the US expressed interest in investing in Pakistan.

"Available tax data will be utilized to increase revenues, without pressuring anyone," Aurangzeb said. "Non-filers will be restricted from opening bank accounts or purchasing property. This requires legislation, we need legal cover for this," he added.

The minister highlighted that the government was phasing out the term 'non-filer' as part of the reform process in the Federal Board of Revenue (FBR), aimed at enhancing transparency and contributing to sustainable development.

Speaking about Pakistan's privatization process, the minister emphasized that companies suited for private sector management should not remain in the public sector. He added that international financial institutions had assured Pakistan of their continued cooperation.

Reflecting on his visit to the US for the IMF-World Bank meetings, Aurangzeb noted that Pakistan was included in all relevant discussions. "Constructive talks were held with the IMF. Our goal is for this to be Pakistan's last IMF program," he stated.

He highlighted recent economic progress over the past six months, focusing on macroeconomic stability, which has led to lower inflation and policy rates. "Our foreign exchange reserves now stand at $11 billion, and rating agencies indicate that Pakistan is moving in the right direction," he added.

Earlier during an interaction with the diaspora leaders, the finance minister briefed them on the socioeconomic developments in Pakistan and shared details of his week-long engagements in Washington, according to press release issued by finance ministry here Sunday.

During an interaction with Pakistani-American tech entrepreneurs, the minister identified IT as one of the burgeoning sectors of the economy. He said that Pakistan's digital ecosystem was being improved through a broad range of legislative, policy, regulatory and operational initiatives.

The minister also met with the President of AIIB, Jin Liqun and acknowledged the Bank's support to Pakistan, particularly in dealing with the aftermath of the devastating floods of 2022. He recalled his previous visit to China where he interacted with the management of Peoples Bank of China (PBOC).

He indicated that government wanted to diversify its financing base and explore the possibility of issuing a panda bond with partial credit guarantee of the AIIB. He added that engaging AIIB as an anchor to support the process would send out a strong signal to the market.

The option of a no-deal roadshow first, followed by a deal roadshow, was also discussed. He expressed satisfaction over the progress of the portfolio of AIIB projects in Pakistan and further efforts to improve the disbursement of ongoing projects.

On the infrastructure side, he invited AIIB to invest in N-5 [GT Road] reconstruction project and also provide support in terms of programme loan for dealing with the impacts of climate change and disaster preparedness.

He also welcomed the upcoming visit of Vice President (Operations) wherein issues of mutual interest would be discussed and portfolio of ongoing projects reviewed and pipeline firmed up. He invited the AIIB President Jin Liqun to visit Pakistan.

(WITH INPUT FROM APP)