ISLAMABAD: Finance Minister Mohammad Aurangzeb Khan has said that the country cannot afford unnecessary subsidies and a rightsizing plan had been prepared and was being implemented.
Speaking at a conference, the minister said that the country’s economy was moving in the right direction. He said the reduction in the policy rate was benefiting the business community and investors. While the government is undertaking fundamental reforms in all sectors of the economy, the reforms have led to an increase in tax receipts.
he said Prime Minister Shehbaz Sharif and his team were committed to economic stability, have prepared a complete plan for rightsizing, which would be carried out by looking at all issues of the institutions. He said the government was making the process of privatization more transparent.
Mr Khan said: “We are fully aware of our economic goals, are taking steps to reduce government expenditure. All steps will be taken for sustainable economic stability as the country cannot afford unnecessary incentives.”
Speaking to the media later, the minister said that the retail sector accounted for 19pc of the economy while the share of the retail sector in taxes was just 1pc. Taxes will be increased by using artificial intelligence.
The minister said Rs9.4 trillion cash had to be documented, adding the privatization of the PIA was being re-launched. He said the rightsizing process of all enterprises will be completed by June 30. He also said that the ratio of taxes on manufacturing, services and salaried class was not sustainable.
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