Federal Finance Minister Muhammad Aurangzeb said the government alone cannot provide jobs to entire 240 million people therefore it was need of the hour that private sector should come forward to fulfil its prime responsibility, reported 24NewsHD TV Channel.
Addressing the Pakistan Economic Growth Conference at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore, FM Aurangzeb acknowledged the scale of Pakistan’s population challenge. Textile giant and former trade minister Gohar Ejaz was also present on the occasion.
He underscored the need to create an environment where businesses and investors can generate employment opportunities. He added that Prime Minister Shehbaz Sharif would personally address the economic challenges and related issues in the coming days.
The finance minister expressed optimism about the country’s economic growth. He said Pakistan’s foreign exchange reserves were continuously increasing and the economy is moving toward stability and development. Aurangzeb also noted that cement production is rising, signaling activity in the construction sector.
The minister said work is underway in the construction sector and that taxes related to construction are increasing. He acknowledged challenges faced by developers and bankers, including recovery issues, but assured that the government is working on solutions.
FM Aurangzeb also said reforms in property tax are in progress and promised “good news” soon. He emphasized that the government is expanding the tax net to bring more sectors into the formal economy. Highlighting structural reforms, Finance Minister said digitalization of the economy will enhance transparency and increase revenues. According to him, digital reforms are expected to improve documentation and reduce leakages in the system.
Meanwhile, former caretaker federal minister Gohar Ejaz has proposed the government that it should reduce heavy taxes to run the country's economy.
Former caretaker federal minister Gohar Ijaz was addressing a ceremony at the Federation of Pakistan Chambers of Commerce in Lahore on Saturday.
He demanded reduction in tax rates to run the country's economy. Ejaz urged Finance Minister Muhammad Aurangzeb to slash taxes on the real estate sector, provide tax relief to the salaried class, and also reduce the sales tax rate. Gohar Ejaz said that currently half of the glass, cement and tiles industries are closed, there is a shortage of 12 million houses in Pakistan, and there is a housing industry worth 500 billion dollars in Pakistan.
Gohar Ijaz urged Finance Minister to abolish taxes on the purchase and sale of property as housing industry can provide five percent growth to the country's economy, which can provide employment to one crore people.
The former minister said that FBR will collect Rs 14 trillion in taxes this year, which is a 12 percent tax-to-GDP ratio. Pakistan's tax-to-GDP ratio could be up to 18 percent. Gohar Ijaz said that the government must reduce taxes. Taxes on individuals and associations of persons should be reduced from 45 percent to 25 percent.
Corporate taxes should be reduced from 60 percent to 25 percent, sales tax rate should be reduced from 18 percent to 10 percent, and tax on the salaried class should be reduced to 10 percent.