Finance Minister Muhammad Aurangzeb Sunday emphasized the need for privatization, describing it as essential to achieving economic stability as Pakistan prepares for its impending bailout negotiations with the International Monetary Fund (IMF).
Speaking during the Pre-Budget Conference 2024–25 in Lahore, Aurangzeb stated, "You have to move towards privatization if you want economic stability in the country."
In an attempt to alleviate the strain on the exchequer and handle the current financial crisis brought on by numerous catastrophic economic situations, the government led by Prime Minister Shehbaz Sharif has pushed for the privatization of a number of state-owned enterprises (SOEs).
The finance minister emphasized that the private sector has joined the government in supporting better economic indicators, such as a decreased current account deficit (CAD) of less than $1 billion and a decline in inflation along with "all-time high" stock exchange levels.
The finance minister emphasized the need to concentrate on issues related to tax and GDP, revealing that there is currently between Rs 8 and Rs 10 trillion in cash in circulation in Pakistan. He also urged businessmen to enter the tax system on their own if they hadn't already.
The minister gave assurances that the government will offer a wide range of facilities and reaffirmed that the government will not change its position regarding the expansion of the tax net.
"People think that if they come into the tax net, they will be harassed for no reason. However, that's not the case, as we will provide facilities and negotiate, but we will not go back from the track," he stated.
In an effort to combat tax evasion, the federal government has already mandated the blocking of SIMs belonging to non-filers who are liable to file an income tax return for the tax year 2023 but do not show up on the active taxpayer list.
With a "just" demand for uniform energy pricing for all industries, Aurangzeb lamented the track and trace system's failure and its non-implementation.
"The industries cannot function at a 25 to 26% interest rate," he stated.