Nationwide Strike Announced by Traders; Finance Minister Invites Them for Dialogue
FBR’s Powers Not Related to Income Tax, Says Muhammad Aurangzeb
Government Improving Privatization and Banking Systems, Finance Minister’s Press Conference
Karachi (Sabah News) – Federal Finance Minister Muhammad Aurangzeb has invited all chambers and associations across the country for talks on 15th July. Speaking at a press conference at the Overseas Investors Chamber of Commerce in Karachi, he said the government will listen to the concerns of chambers and associations regarding the strike scheduled for 19th July, and also explain its own position. He emphasized that all chambers should study the current legislation beforehand.
He stated that strong safeguards have been implemented in the current law against sales tax fraud. For arrests in irregularities involving more than Rs. 50 million, approval from the Commissioner or a three-member FBR board is mandatory. Aurangzeb clarified that the FBR’s additional powers are not related to income tax, and a crucial meeting with chamber presidents will be held tomorrow to explain these powers, which apply only to individuals
Muhammad Aurangzeb clarified that the Federal Board of Revenue’s (FBR) enhanced powers have no connection with income tax. He stated that a key meeting will be held tomorrow with the presidents of various chambers to explain these additional powers, which will only apply in cases where sales tax evasion exceeds PKR 50 million. He said that propaganda is being spread against these powers, which were passed by the National Assembly with the consultation of the Standing Committee and were introduced specifically to curb sales tax fraud.
The Finance Minister further said that a meeting was held today with the Governor of the State Bank and the heads of commercial banks, focusing on the role of banks in ensuring sustainable development in Pakistan. He noted that whatever financial space was available has already been used to provide relief to salaried individuals.
He mentioned that Pakistan’s financial landscape has improved, leading to increased liquidity in banks. Banks should now expand lending to the private sector. Improvements have also been observed in SME and agricultural sector financing.
Aurangzeb revealed that the Privatization Commission has been handed 24 State-Owned Enterprises (SOEs) for privatization, and banks can play a key role, especially in the case of PIA. He stressed the importance of banks working with sponsors to revive sick industries and called for joint efforts to rehabilitate loss-making state institutions. He added that Pakistan’s banking sector is continuously supporting the national economy.
He said that the latest survey from the Overseas Investors Chamber of Commerce reflects economic stability. The goal is to move forward by bringing together local and foreign investors. Multinational companies have been paid $2.3 billion in profits, and their refund issues will soon be resolved.
Aurangzeb appreciated the volume of remittances coming into the country and predicted further improvements in economic indicators in the coming days. Sales tax refunds amounting to PKR 75 billion have already been issued this month. He acknowledged that the report on losses of public institutions has been made public, and the private sector has been encouraged to invest in them.
In response to a question, he said that the Economic Coordination Committee (ECC) is focusing monthly on food prices. For structural solutions, adopting the deregulation formula is essential, which is why there are no issues with the prices of maize, rice, or pulses.
He added that there should be debate on how to convert the current economic stability into sustainable growth. “Which finance minister does not want rapid growth?” he asked, adding that the pharmaceutical sector is improving and has confirmed this itself. He also noted that international companies sometimes shut down operations in various countries for different reasons.
Regarding commodity and sugar prices, he said the ECC is monitoring them monthly. He believes deregulating all sectors in Pakistan will bring improvement. The Ministry of Food and the federal cabinet are actively working to curb the smuggling of wheat and sugar.
The Finance Minister added that the top leadership of the Overseas Investors Chamber of Commerce and Industry (OICCI) has been invited to meet the Prime Minister in Islamabad. He emphasized that banks can play a crucial role in reviving sick industries, and the government is working hand-in-hand with both local and foreign investors. The government has reduced its expenditures, addressed the concerns of overseas Pakistanis, and tackled barriers to economic stability.
Aurangzeb said issues related to profit repatriation and the opening of Letters of Credit (LCs) for foreign investors have been resolved. During the fiscal year ending June 30, $2.3 billion in profits were repatriated by multinationals. He reiterated that FBR’s enhanced powers are related to sales tax, not income tax.
He also noted that the government has issued PKR 75 billion in sales tax refunds this month—a significant step toward restoring business community confidence.
Finally, he acknowledged that every finance minister wishes for immediate economic growth, but rapid growth could put intense pressure on foreign exchange reserves, risking economic instability once again.