Federal Finance Minister Muhammad Aurangzeb on Monday dismissed criticism surrounding the Federal Board of Revenue’s (FBR) enhanced powers, calling it "propaganda" and reaffirming that the new authority was approved lawfully and designed only to counter large-scale sales tax fraud.
Speaking to reporters at the Overseas Investors Chamber of Commerce and Industry (OICCI), Aurangzeb said the measures had been formally passed by the National Assembly in consultation with the Standing Committee, countering claims that the powers were imposed without oversight.
He clarified that the additional FBR powers apply exclusively to cases involving over Rs50 million in tax evasion not on ordinary businesses.
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“The new legal tools have been implemented solely to prevent fraudulent activity related to sales tax,” Aurangzeb said.
He announced that an important meeting with presidents of chambers of commerce will be held tomorrow, where the government will explain the scope and intent of the FBR’s actions to business leaders.
Boosting investor confidence
Aurangzeb called for stronger cooperation between local and foreign investors, saying such collaboration is critical to boosting economic recovery and long-term stability.
He said that the government had paid $2.3 billion in profits to multinational companies, a move aimed at reinforcing investor trust amid ongoing fiscal reforms.
He added that refund issues facing multinational firms would be resolved soon, as part of wider efforts to improve Pakistan’s business environment.
In a bid to deepen engagement, the senior leadership of the Overseas Investors Chamber of Commerce and Industry (OICCI) has been invited to Islamabad for a meeting with Prime Minister Shehbaz Sharif.
Aurangzeb also said remittance volumes were commendable, and that macroeconomic indicators are expected to show further improvement in the coming days.
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The finance minister said that the government had paid Rs75 billion in sales tax refunds this month and was encouraging private sector participation in state-owned enterprises (SOEs) facing financial losses.
Aurangzeb said the ECC was closely monitoring food prices monthly, noting that no irregularities had been observed in the prices of maize, rice, and pulses.
Commenting on the financial sector, the minister noted that Pakistan’s banking industry is consistently supporting the national economy, especially in the wake of recent liquidity and lending shifts.
He cited a fresh survey by the OICCI which he said reflects renewed investor confidence and signs of economic stability.
Aurangzeb said Pakistan’s banking sector must now increase lending to the private sector, as the country moves toward sustainable economic development.
The finance minister confirmed he had held a meeting earlier in the day with the Governor of the State Bank and presidents of commercial banks to discuss the financial sector’s evolving role.
He stated that Pakistan’s financial outlook has improved, leading to an increase in bank liquidity, which should now be directed toward boosting private sector credit, particularly for SMEs and agriculture.
Aurangzeb added that the Privatisation Commission has been handed 24 state-owned enterprises (SOEs), signalling a fresh push for divestment of loss-making public sector firms, including Pakistan International Airlines (PIA).
“Banks have a critical role to play, especially in privatisation initiatives like PIA,” the minister said, suggesting that financial institutions collaborate with sponsors to revive distressed industries.
He called for joint efforts between public and private sectors to rehabilitate underperforming state institutions, framing it as essential to long-term structural stability
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