Govt targets informal sector as Nestlé halves imports

FinMin links tax reform with economic recovery as company highlights automation, localisation and sharp import reducti

ISLAMABAD:

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Monday reaffirmed the government's commitment to strengthening Pakistan's formal economy and encouraging responsible long-term investment during a meeting with a delegation from Nestlé Pakistan. The meeting focused on taxation, compliance, investment climate and export-oriented growth.

Emphasising the government's resolve to clamp down on the informal sector, an effort already yielding visible results in several industries, the finance minister said improved compliance, transparency and a strengthened tax ecosystem were central to Pakistan's economic recovery and long-term macroeconomic stability under the ongoing reform agenda. He highlighted the establishment of the Tax Policy Office within the Finance Division as a major structural reform that would enable continuous, year-round engagement with the private sector, allowing timely refinement of policies and more effective implementation ahead of the next federal budget cycle to improve revenue outcomes.

The Nestlé Pakistan delegation, led by Chief Executive Officer Jason Avancena, briefed the minister on the company's longstanding commitment to Pakistan and future expansion plans.

The CEO outlined how the company had strengthened its operations through localisation, portfolio adjustments, advanced automation, efficiency improvements and continued innovation across product categories, adding that Nestlé Pakistan's facilities in Sheikhupura and Khanewal were now fully automated and linked to global diagnostic systems.

He said the company was implementing solar and biomass energy systems, digital dashboards, environmentally improved packaging and supply-chain automation to reduce operating costs and greenhouse-gas emissions while strengthening long-term competitiveness across the manufacturing and distribution network.