Govt targets 13.5% Tax-to-GDP ratio

October 17, 2024 (MLN): Federal Finance and Revenue Minister, Senator Muhammad Aurangzeb, has reiterated the government’s commitment to increasing the country’s tax-to-GDP ratio to 13.5% by addressing leakages and bringing untaxed sectors into the tax 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 Minister was talking to U.S. Ambassador Donald Blome who called on him at the Finance Division today.

During the meeting, matters of mutual interest and bilateral cooperation were discussed.

Senator Muhammad Aurangzeb called the macroeconomic reforms “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 for ensuring holistic development goals.

U.S. 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 economic growth of Pakistan.

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