Islamabad: Finance Minister (FM ) Muhammad Aurangzeb has acknowledged some companies are leaving Pakistan and this is fact that excessive tax and high price of energy are serious problems for business.
" It is true some firms are leaving Pakistan. We should accept that tax, energy prices are higher. They are real problems, he said this while addressing Pakistan Policy Dialogue here Wednesday.
He held development is possible due to economic reforms in the country. We are taking steps for improvement in the economy. The private sector will have to come forward and play its role in the economy.
He stated tax policy was taken over from FBR and was transferred to finance division so that the process of tax collection and policy making could be separated.
FBR focus is on tax recovery, he said adding all government payments will be transferred to digital channels till June of this year.
Non banking personnel are being included in fiscal system formally.
He held different people have diverse opinion on remittances. Remittances of 38 billion dollars were received last year. Remittances of 41 billion dollars are likely to come in Pakistan this year.
He stressed duties will have to be rationalized and cost of business will have to be curtailed. Duties are being decreased on raw material through Tariff reforms for the first time in the last 78 years. Reduction in tariff will lead to enhancement in exports and industrial production.
The prevailing economic reforms can prove East Asia Movement for Pakistan. The payment of loans has not decreased on its own but we have taken steps.
He indicated the local investors participated in the privatization of PIA. 24 institutions have been handed over to privatization commission. About 1000 billion rupees are being wasted in government institutions every year. Utility Stores, PASCO and PWD were closed. Corruption was being committed in the subsidy given to these institutions.
Muhammad Ali advisor to Prime Minister (PM) for privatization said government is determined for economic reforms.