Govt to boost tax-to-GDP ratio to 13.5 per cent with reform plan: FinMin

ISLAMABAD: Finance Minister Muhammad Aurangzeb has reaffirmed the government’s commitment to raising Pakistan’s tax-to-GDP ratio to 13.5 per cent.

This goal, he explained, will be achieved by plugging tax leakages and bringing previously untaxed sectors into the tax system.

Aurangzeb highlighted that the government, under Prime Minister Shehbaz Sharif, has already approved a comprehensive reform plan for the Federal Board of Revenue (FBR). As part of this initiative, experts have been appointed to the board of PRAL, the FBR’s IT arm, to streamline operations.

The Finance Minister shared these updates during a meeting with US Ambassador Donald Blome at the Finance Division today. They discussed various topics of mutual interest, focusing on strengthening bilateral cooperation.

Aurangzeb also noted that while macroeconomic reforms are ongoing, the country faces additional challenges, including climate change and child malnutrition.

These issues, he warned, could deepen inequality and hinder long-term economic stability. He stressed the need for climate resilience measures and efforts to combat malnutrition, with support from international development partners.

In response, Ambassador Blome commended Pakistan’s efforts to stabilise the economy and praised the government for taking bold steps, particularly in taxation and energy reforms.

He also reiterated the US commitment to further enhancing cooperation in development initiatives and supporting US investments to boost Pakistan’s economic growth.

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