Finance Minister Aurangzeb says talks with IMF progressing well

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Wednesday that the government will not introduce new tax measures immediately. Despite a significant shortfall in revenue collection, he ruled out additional steps for now. The Federal Board of Revenue (FBR) missed its Rs12.97 trillion target for FY2024-25 by Rs1.2 trillion. It managed to collect Rs11.74 trillion after two downward revisions. The gap was mainly blamed on pending tax cases in courts.

Speaking to the media, Aurangzeb expressed satisfaction over ongoing talks with the International Monetary Fund (IMF). He said the negotiations were moving forward positively. The minister remained confident that Pakistan could raise its tax-to-GDP ratio to 11%. He added that pending court cases might boost FBR’s revenue once resolved. However, he made it clear that further tax hikes are not under consideration at this stage.

In an earlier briefing to the Senate Standing Committee on Finance and Revenue, Aurangzeb shared a key structural change. He announced that the Finance Division would now prepare the next Finance Bill. The Tax Policy Office (TPO) will take over this task from the FBR. This move is part of a broader strategy to reform tax policy and planning. Officials expect this shift to improve long-term fiscal governance.

In a separate interview with Bloomberg, the finance minister revealed Pakistan’s plan to host an investor conference in Washington. The event is expected later this month and will focus on attracting foreign investment. Aurangzeb said specific sectors with clear investor interest had already been identified. He noted that discussions with US-based investors have already begun. The goal is to boost economic activity through targeted partnerships.

Although the revenue shortfall poses challenges, the government is staying optimistic about recovery and reform. Officials hope that improved tax recovery and upcoming investment efforts will ease financial pressure. For now, the focus remains on structural reforms rather than immediate tax increases. This approach reflects a balanced attempt to grow the economy without overburdening taxpayers.