https://arab.news/zavbe
- Muhammad Aurangzeb resolves to continue “broad-based reforms” in energy, taxation and other sectors
- Donald Blome reaffirms Washington’s commitment to promote “high-quality” US investment for Pakistan’s growth
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Thursday reiterated Islamabad’s resolve to implement broad-based reforms in various economic areas such as energy and taxation, state-run media reported, in his meeting with US Ambassador Donald Blome.
Facing a prolonged economic crisis, Pakistan’s government has undertaken economic reforms in line with conditions imposed by the International Monetary Fund (IMF) in exchange for its critical aid. These reforms include terminating agreements with independent power producers and taking measures to enhance the tax net.
Islamabad views Washington as an important economic partner and ally. It has relied on American aid in the past and Washington’s huge influence with the IMF for frequent economic bailouts.
“Minister for Finance and Revenue, Senator Muhammad Aurangzeb has reiterated the government’s resolve to carry on with broad-based reforms on taxation, energy and SOE [state-owned enterprises],” state broadcaster Radio Pakistan said.
Aurangzeb issued the comments whilst meeting US Ambassador Donald Blome, who had called on him in Islamabad. The Pakistani finance minister spoke about raising the tax-to-GDP ratio to 13.5 percent, saying that authorities plan to plug leakages and bring untaxed sectors into the tax net.
He said the government had approved a “comprehensive transformation plan” for the Federal Board of Revenue (FBR), the country’s central revenue authority.
“The Minister called the macroeconomic reforms “work in progress” and pointed to more serious challenges of climate change and child stunting,” Radio Pakistan said. “Which threatened to perpetuate inequalities and disrupt the pace of economic growth and stability in Pakistan over the medium to long term.”
The state media said Blome appreciated Pakistan’s efforts for improving macroeconomic stability and lauded the government for initiating “challenging and bold reforms, particularly in the taxation and energy sectors.”
“He reaffirmed his commitment to enhancing bilateral cooperation in technical and development initiatives, and promoting high-quality US investment for economic growth of Pakistan,” Radio Pakistan said.