Federal Finance Minister Muhammad Aurangzeb said on Sunday that the country cannot function with tax-to-GDP at 9 per cent and that an expansion of the tax net is the demand of the moment.
Addressing a press conference in Islamabad, the finance minister said the problem does not arise from employees but from corruption within subsidy allocations. He said the government remains committed to structural reforms and that no grant may receive approval without the consent of parliament.
FinMin Aurangzeb said a staff-level agreement with the International Monetary Fund (IMF) now exists. He said the US Exim Bank has returned to the financing of the Reko Diq project, which he termed as a game-changer for the country.
The finance minister said that a balanced external position and a stable current account remain essential for sustainable growth. He said encouragement for the private sector continues.
He maintained that the prime minister has instructed the removal of the export development surcharge, and a summary now rests with the federal cabinet for approval. Aurangzeb also said that a meeting of the National Finance Commission will take place next week.
