Islamabad, February 23, 2025 – Federal Finance Minister Muhammad Aurangzeb has reaffirmed the government’s commitment to fair taxation and essential economic reforms, assuring the business community that their concerns will be addressed transparently.
Speaking at the third All Pakistan Chambers Presidents Conference at the Faisalabad Chamber of Commerce & Industry (FCCI), Aurangzeb emphasized the need for collaboration between the government and the private sector to achieve sustainable economic growth.
Addressing business leaders, Aurangzeb highlighted that Pakistan’s economy is now on the right track but requires the private sector to play an active role in ensuring long-term recovery. He stressed that before the budget announcement in May-June, consultations with the business community would continue, ensuring open discussions on taxation policies and economic strategies.
Aurangzeb acknowledged the significant role of businesses in Pakistan’s economic revival and pointed out that the country is currently operating under the International Monetary Fund (IMF) programme, which influences its economic policies. Despite these challenges, he assured that the government has a clear economic direction and will keep all stakeholders informed about future policy changes.
One of the key reforms Aurangzeb discussed was the Federal Board of Revenue (FBR) restructuring. He stated that the FBR would now focus solely on revenue collection, while the Ministry of Finance would handle policy-making matters. This separation, he explained, would lead to greater efficiency and transparency in taxation.
Aurangzeb stressed that economic sustainability hinges on fair taxation, but this requires eliminating corruption. He urged all stakeholders to support the government’s anti-corruption drive, emphasizing that Pakistan’s tax-to-GDP ratio currently stands at 9-10%, which is insufficient for long-term development. He noted that sectors like agriculture and retail have not been contributing adequately, but in a historic move, agricultural taxation has been introduced for the first time in 75 years.
Aurangzeb further explained that tax burdens must be distributed equitably, as the salaried class and manufacturing sector bear the heaviest tax load. The introduction of agricultural taxation will help broaden the tax base and reduce the burden on existing taxpayers.
The finance minister assured business leaders that taxation policies would be fair, transparent, and designed to promote economic stability. He emphasized that revenue and customs officials were present at the event to listen to concerns and incorporate them into effective policies. Aurangzeb encouraged stakeholders to submit written recommendations, which would be reviewed to ensure that taxation policies align with business interests.
Earlier, FCCI President Rehan Naseem Bharara underscored the importance of sustainable policies for economic stability. He highlighted that Pakistan’s economy is progressing but requires consistent policies to avoid cycles of growth and decline. He also celebrated FCCI’s Golden Jubilee, noting that the All Pakistan Chambers’ Presidents Conference was part of efforts to restore business confidence.
Bharara further mentioned that FCCI is the first fully digitalized chamber in Pakistan, offering an SMS-based application that allows members to access services online. He emphasized the potential of the IT sector, stating that Pakistan’s IT exports could reach $100 billion if the government facilitates investment inflows through legitimate financial channels.
In recognition of his contributions, FCCI President presented a commemorative shield to Aurangzeb. Several notable figures, including former FPCCI President Mian Muhammad Adrees, also attended the event.