FinMin calls for broadening tax base

ISLAMABAD: A delegation of the Asian Development Bank (ADB) on Thursday called on Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and discussed the ongoing and future cooperation between Pakistan and the ADB, Pak News Info reported.

According to a press statement issued here, the finance minister held a meeting with the Alternate Executive Directors (AED) of the ADB at Finance Division. Muhammad Aurangzeb highlighted the improvement in Pakistan’s macroeconomic conditions.

The finance minister also emphasised the need for broadening the tax base and digitalisation of the country’s tax regime. He informed the ABD’s delegation that the services of Mckinsey & Company have been engaged to assist the initiative of digitalisation of the Federal Board of Revenue (FBR).

Muhammad Aurangzeb said that digitalisation of the country’s tax regime will not only enhance revenue but will also add to the transparency of the tax collection system.

The finance minister underscored the commitment of the federal government for SOE reforms and privatisation agenda.

As per the statement, the ADB delegation praised Pakistan’s efforts to promote economic stability through proactive measures. “The ADB’s delegation expressed confidence in Pakistan’s economic trajectory and reaffirmed its commitment to cooperate in Pakistan’s development,” it added.

Earlier on May 14, the finance minister directed all concerned ministries and divisions to submit proposals for the categorisation of their respective State-Owned Enterprises (SOEs) by May 20.

The categorisation is a part of a comprehensive review of the rationale for retaining commercial functions within the public sector, according to press release issued by finance ministry.

The objective is to retain only the essential functions within the public sector and to assign the remaining functions to the private sector. At the same time the entities which remain in public sector have to be more competitive, accountable, and responsive to the needs of citizens.