US Envoy Lauds Pakistan’s Bold Reforms in Taxation, Energy Sector

Federal Finance and Revenue Minister Muhammad Aurangzeb has reiterated the government’s resolve to carry on with broad-based reforms on taxation, energy, and SOE fronts. The Minister was talking to US Ambassador Donald Blome who called on him at the Finance Division today. During the meeting, matters of mutual interest and bilateral cooperation were discussed. US Ambassador Donald 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 the economic growth of Pakistan. Aurangzeb said the government was committed to raising the country’s tax-to-GDP ratio to 13.5 percent by plugging leakages and bringing untaxed sectors into the net. He said the government under Prime Minister Shehbaz Sharif had approved a comprehensive transformation plan for FBR and brought in experts on the Board of PRAL (IT arm of FBR). The Finance Minister called the macroeconomic reforms a “work in progress” and pointed to more serious challenges of climate change and child stunting which threatened to perpetuate inequalities and disrupt the pace of economic growth and stability in Pakistan over the medium to long term. He said Pakistan looked forward to building climate resilience through adaptation reforms and averting malnutrition with the technical and financial support of development partners to ensure holistic development goals.