Finance Minister Muhammad Aurangzeb has revealed that the International Monetary Fund (IMF) has no objections to implementing targeted subsidies. These subsidies, he said, could be distributed to eligible recipients through the Benazir Income Support Programme (BISP).
To ensure uniformity, the minister indicated that discussions would be held with chief ministers this week, aiming to apply a consistent policy nationwide. He was speaking to the media in an informal discussion in parliament.
Additionally, he said, the federal finance secretary will coordinate with provincial secretaries to prepare a comprehensive national financial package alongside the provinces.
Addressing concerns over external financing, Aurangzeb disclosed a $2 billion gap and noted that negotiations are at an advanced stage to bridge this shortfall. He emphasized the importance of securing commercial loans.
"There is a need to secure an agreement for commercial loans at this time, not exactly their issuance," he added, stressing that talks for debt rollover are in their final stages and progressing positively. The minister anticipated that relevant institutions from allied countries would soon update their governments on these developments.
Regarding tax policy, Aurangzeb assured that the Federal Board of Revenue (FBR) is set to meet its tax collection targets through enhanced digitalization and enforcement measures. He also stated that there are no current plans to increase withholding taxes.
He further said that the demand for withdrawal of income tax on traders meant the tax should be collected from the salaried class and the manufacturing sector.
In response to demands from the trading community, he stressed that they would be extended every facility and their legitimate demands accepted. "Every sector of the society must pay tax without which the country cannot develop," the minister insisted.
