ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb on Tuesday highlighted that 43 percent of the sectors in Pakistan’s economy pay less than one percent of the total tax collected, urging wholesalers, distributors and retailers to improve their contributions.
Pakistan’s narrow tax base and persistent tax evasion issues lead to insufficient revenue collection for the country’s fragile economy each year. The shortfall exacerbates the government’s tendency to run a high fiscal deficit, often financed through domestic and international borrowing, which increases the nation’s debt burden.
The country’s top tax collection body, the Federal Board of Revenue (FBR), collected Rs1.455 trillion ($5.2 billion) in July-August against the projected target of Rs1.554 trillion ($5.6 billion), according to provisional figures compiled officially over the weekend.
“43 percent sectors of this economy pay less than one percent tax so we have to make a collective effort and request these sectors to contribute otherwise we will keep going to the IMF [International Monetary Fund] for more [loans],” the finance minister said.
“Wholesalers, distributors, retailers we request you again to make a move to contribute to the country’s economy,” he continued. “We request them to help us.”
The minister made it clear the tax imposed on these sectors would not be withdrawn, pointing out that such a step would create more problems for the salaried class and manufacturing sector.
Pakistan has set a challenging tax revenue target of Rs13 trillion ($46.66 billion) for the current fiscal year, nearly a 40 percent increase from the previous year, to strengthen its case for a new bailout deal with the IMF.
The South Asian nation’s new administration has also decided to digitalize the tax collection system to prevent leakages, even as a large segment of the national economy remains undocumented.
Aurangzeb highlighted his commitment to cutting down the size of the federal government, adding that a method was being followed in which six ministries were initially chosen, of which two would be abolished.
However, he did not specify which ministries he was referring to.
“There will also be a reduction in the number of officers from grade 17 to 22,” he added. “We are closing the entities and departments that can be shut down.”
The minister said once the implementation of “rightsizing” the initial ministries was completed, the government would address the next five ministries and continue the process.
He also mentioned that remittances had remained at an all-time high in recent months, and highlighted that rating agencies Fitch and Moody’s had also upgraded Pakistan’s ranking by one notch.
Pakistan’s finance minister says 43 percent economic sectors contribute less than one percent tax
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Pakistan’s finance minister says 43 percent economic sectors contribute less than one percent tax
- Muhammad Aurangzeb urges wholesalers, distributors and retailers to improve their tax contributions
- Pakistan’s tax collection body generated $5.2 billion in July-August, falling short of its $5.6 billion target
Pakistan rejects Amnesty claims of Israeli spyware use, calls reports ‘disinformation’
- FO denies any link with Israel, says Pakistan has “absolutely no cooperation” on surveillance tools
- Islamabad accuses India of delaying clearance for relief aircraft bound for flood-hit Sri Lanka
ISLAMABAD: Pakistan on Friday rejected an Amnesty International report alleging the use of Israeli-made invasive spyware in the country, calling the findings speculative and misleading.
Amnesty’s investigation, published Thursday under the title Intellexa Leaks, cited the case of a Pakistan-based human rights lawyer who reported receiving a suspicious WhatsApp link in 2025. According to Amnesty International’s Security Lab, the link bore signatures consistent with Predator, a spyware product developed by Israeli manufacturer c
Foreign Office spokesperson Tahir Andrabi dismissed the suggestion that Islamabad had deployed the tool or maintained any technological cooperation with Israel.
“These are all media speculations. These are all rumor-mongering and disinformation. There is absolutely no cooperation between Pakistan and Israel on anything, let alone a spyware or these kinds of tools. So, I would reject it quite emphatically,” he said at a weekly briefing.
Andrabi also accused India of obstructing humanitarian operations, saying New Delhi delayed flight clearance for a Pakistani relief aircraft carrying aid to flood-affected Sri Lanka.
“The special aircraft carrying Pakistan’s relief goods had to wait for 48 hours, in fact more than 48 hours, around 60 hours, while the flight clearance from India was delayed,” he said.
He added that the eventual conditional flight window was too narrow to be workable.
“The partial flight clearance which eventually was given after 48 hours was operationally impractical, time-bound just for a few hours and hence not operable, severely hindering the urgent need for the relief mission for the brotherly people of Sri Lanka,” Andrabi stated.
“Humanitarian assistance is like justice, if it is delayed, it is denied.”
Responding to India’s claim that clearance was granted within four hours, he said Pakistan has documentary proof contradicting New Delhi’s version.
On a separate question about reported delays in the arrival of a Turkish delegation aimed at mediating between Islamabad and Kabul, Andrabi said Pakistan welcomed Ankara’s initiative but was unaware of the cause of postponement.
“We stand ready to receive the Turkish delegation. That delegation has not arrived as yet. And I’m not aware of any schedule. Pakistan is ready to hold negotiations, discussions,” he said, adding that the delay may be linked to coordination with the Afghan side.
