All entities will have to be privatized, says the Minister of Finance

KAMALIA: Federal Finance Minister Senator Muhammad Aurangzeb on Tuesday reaffirmed the government’s commitment to cut spending to strengthen the country’s economy, ARY News reported.

At a press conference in his hometown of Kamalia, the minister said the federal government would close parallel ministries or departments transferred to the provinces.

The move is expected to significantly reduce expenses and improve efficiency, he said, adding that Prime Minister Shehbaz Sharif has already announced the closure of Pakistan’s Public Works Department.

The minister added that the government will privatize state-owned enterprises that significantly burden the state budget.

“If PIA had been privatized 10 years ago, there would not have been such big losses,” he said.

The minister also announced the end of airport outsourcing – in July or August this year. the Karachi airport is to be handed over to the private sector, followed by the Lahore airport.

On the revenue side, the minister emphasized the need to increase the tax-to-GDP ratio over the next three years from 9.5% to 13%, emphasizing that taxes are necessary for the functioning of the country.

To achieve this goal, the government announced revenue measures that include the inclusion of the non-taxable sector in the tax base, the phasing out of tax exemptions worth Rp 3.9 trillion, and a change in policy formulation in areas such as health and agriculture.

The government is also focusing on ensuring compliance, eliminating leakages in the system and implementing a comprehensive digitalization system to reduce human intervention, increase transparency and end corruption.

“Sales tax automation is a top priority for the current government,” he noted.

The minister assured that the prime minister’s recent visit to China focused on technology transfer, industrial development and increasing exports, and not on seeking aid.