Finance Minister Announces Abolition of 'Non-Filers' and New Economic Measures

**ISLAMABAD:** Finance Minister Muhammad Aurangzeb announced the government’s decision to abolish the concept of 'non-filers'. Addressing the media in Islamabad, the finance minister acknowledged that the salaried class is particularly experiencing financial strain from new taxes. He pledged to offer relief to salaried individuals once any financial respite becomes feasible.

The minister emphasized the government’s efforts to eliminate the 'non-filers' category, expressing confidence that ongoing initiatives will make the categorization obsolete. Highlighting key economic improvements, he stated that the country’s foreign exchange reserves have risen to $9 billion, and inflation has reduced from 38% to 12%.

Aurangzeb revealed that the repatriation of dividends to international companies, which is crucial for attracting foreign direct investment, is complete. Additionally, the World Bank has approved $1 billion for the Dasu project, and the International Finance Corporation (IFC) has sanctioned $400 million for PTCL, to be received in the next fiscal year. The Federal Board of Revenue (FBR) achieved tax collections of Rs 9.3 trillion, reflecting a 30% growth.

Emphasizing macroeconomic stability, the finance minister noted the FBR’s complete digitization, which will enhance efficiency and curb corruption through technological advancements. He assured that all tax refunds up to June 30, 2024, amounting to over Rs 50 billion, would be disbursed within the next two to three days, along with the Duty Drawback of Local Taxes and Levies (DLTL) refunds. He mentioned that 42,000 retailers are now registered and will be taxed from July 1, reiterating his stance on eliminating the 'non-filers' concept.

Addressing the inflation-struck masses, the finance minister said, "I completely understand the stress that people from different sectors feel about additional taxes; I completely empathize and sympathize, but we need to work for it." He emphasized the government’s commitment to reducing the burden on common people and businesses by curbing leakages and improving the management system.

Announcing a new pension system for civil employees effective immediately, with the military to follow next year, Aurangzeb expressed optimism about the upcoming agreement with the IMF, expected in July. "The IMF program is our assurance in terms of macro stability. We are taking it forward; it is inevitable. I'm very optimistic that we'll be able to take it through the finish line for an Extended Fund Programme which is going to be larger and longer in nature," he told reporters.

The cash-strapped federal government adopted an Rs 18.9 trillion budget laced with tax-raising measures to secure a new IMF bailout after almost defaulting last year. The finance minister concluded by stating that the recent resolution on Pakistan in the US Congress is unrelated to the IMF program, and discussions with IMF officials during his recent US visit were satisfactory. This final IMF program will span three years and be valued between $6 to $8 billion.

The finance minister further elaborated on the economic landscape, noting that significant steps have been taken to stabilize and grow the economy. These include efforts to enhance revenue collection, improve fiscal discipline, and implement structural reforms. The government’s commitment to transparency and accountability is evident in the digitization initiatives aimed at reducing corruption and increasing efficiency.

Aurangzeb highlighted the importance of international support and collaboration, pointing out that the approval of funds from the World Bank and IFC reflects global confidence in Pakistan’s economic policies. He emphasized that these funds will be utilized for critical infrastructure projects and to support key sectors of the economy, fostering sustainable growth.

The minister also touched upon the social implications of the economic policies.