Finance Minister Muhammad Aurangzeb Calls for Taxpayer Trust and Policy Stability to Boost Private Investment

PothikTV News Desk: 20 October 2026, 7:04 am

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has pledged to restore public trust and credibility in the Federal Board of Revenue, stressing that taxpayer confidence, policy predictability, and stronger enforcement are essential to building a modern and growth-friendly tax system in Pakistan.

Speaking at a two-day high-level workshop titled “Reforms for a Modern and Growth-Friendly Tax System in Pakistan” held in Islamabad, Aurangzeb outlined key tax reform priorities aimed at supporting sustainable economic growth and long-term private sector investment.

The event was convened by the Ministry of Finance in collaboration with the International Monetary Fund. Aurangzeb delivered opening remarks alongside Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, and Rodrigo Valdés, Director of the IMF’s Fiscal Affairs Department.

During his address, Aurangzeb noted that ongoing tax reforms had successfully raised the Federal Board of Revenue’s tax-to-GDP ratio from 8.8 percent to 10.3 percent. He highlighted that tax revenues increased by 40 percent over the last two fiscal years due to improved policy measures and enhanced enforcement.

Breaking down the 1.5 percentage-point increase in the tax-to-GDP ratio, the finance minister explained that 0.9 percentage points stemmed from enforcement actions, while the remaining 0.6 percentage points resulted from new policy initiatives.

Aurangzeb emphasized that authorities actively tackled systemic issues, stating that the government stopped leakage, theft, and corruption. He noted that deeper enforcement efforts will play an increasingly vital role in the upcoming phase of tax reforms.

Underlining the necessity of a predictable business environment, the finance minister stated that the private sector requires policy continuity to make confident, long-term investment decisions. He cautioned that the government cannot continue to give surprises to private-sector investment at every single budget.

The minister identified political consensus, institutional strength, and taxpayer trust as primary drivers of sustainable tax reform. He also stressed the importance of close cooperation between federal and provincial governments to achieve broad agreement on national tax policies.

Restoring trust and credibility to the tax administration remains among the highest priorities, Aurangzeb asserted, reiterating the need to improve relations between taxpayers and tax authorities while broadening the tax base.

The workshop brought together senior government officials, international tax experts, academics, private-sector leaders, and representatives from the IMF and the World Bank. The six main sessions focused on taxation and economic growth, tax system modernization, a unified sales tax regime, income tax simplification, tax administration digitalization, and fiscal federalism.