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Aurangzeb exposes sectoral pressure to avoid paying taxes

Finance Minister Muhammad Aurangzeb revealed that the government is under pressure from many sectors to reassess recently imposed taxes on Thursday. The speaker said, “Everyone wants to avoid paying taxes.” Aurangzeb gave a brief economic summary to a National Assembly committee meeting, highlighting the positive aspects of the previous fiscal year.

Foreign reserves were worth $9 billion, and inflation rates were steadily declining. But he acknowledged that the postponement of the IMF program from 2023 had contributed to currency volatility. Still, foreign companies are now making profits and paying dividends again as the economy performs better.

The Dasu dam project received $1 billion in funding from the World Bank, and Aurangzeb promised that there would be no arbitrary restrictions or controls on imports. He declared that the value of the dollar would not fluctuate, dispelling rumours to the contrary.

Read more: Finance Minister Muhammad Aurangzeb updates tax reforms in assembly address

In addition to taxing property developers and builders, the government has also registered retailers and consulted with agriculture ministers on income tax. On July 1, 2024, the civil service began offering contributory pensions; on July 1, 2025, the armed forces will launch a comparable program.

Five ministries are to be disbanded over the next year after Aurangzeb called on the armed forces to review their organisational structure.