Corruption Draining Rs. 1 Trillion Annually: Finance Minister
Finance Minister Calls Reducing Duties Crucial for Pakistan’s Economy
ISLAMABAD: (Web Desk) – Federal Minister for Finance Muhammad Aurangzeb has said that increasing duties is harmful to the economy and stressed the need to reduce the cost of doing business to support sustainable growth.
Speaking on economic reforms, the finance minister said the government is planning to issue Panda Bonds in China’s financial market, describing it as an important step toward diversifying Pakistan’s global financing options.
Due to corruption, nearly one thousand billion rupees were being wasted annually in government institutions, stated Finance Minister Muhammad Aurangzeb. He emphasized that this massive financial loss had severely affected economic stability and public service delivery, highlighting the urgent need for transparency, accountability, and strong governance reforms to prevent further misuse of public funds.
He said that four years ago Pakistan was facing a severe shortage of dollars, but concrete measures have now been taken to steer the economy toward stability. Aurangzeb added that due to a reduction in interest rates, there is no longer a need to frequently approach the Debt Management Office.
The finance minister announced that by June, all government payments will be shifted to digital channels to enhance transparency and efficiency. He further revealed that 24 state-owned enterprises have been handed over to the Privatization Commission, noting that nearly Rs1,000 billion is lost annually due to inefficiencies in public sector entities. Utility Stores, PWD and PASSCO have already been shut down to reduce government expenditures.
Reiterating his stance, Aurangzeb said continuous increases in duties damage the economy, making tariff rationalization and reduction in business costs essential. He said duties on raw materials are being reduced under tariff reforms, which will help boost exports and industrial production.
He also stated that local investors have participated in the privatization process of PIA, while tax policy has been shifted from the FBR to the Finance Division. The FBR, he said, is now fully focused on tax collection.
The finance minister said circular debt has been reduced and emphasized that economic growth is only possible through sustained reforms. He added that reforms in the energy sector are ongoing and efforts are underway to bring non-banking individuals into the formal financial system.
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Aurangzeb disclosed that remittances are expected to reach $41 billion this year, compared to $38 billion in the previous fiscal year. While acknowledging that some companies are leaving the country, he urged the private sector to step forward and play its role in economic development.
He concluded by saying that Prime Minister Shehbaz Sharif is personally leading the reform task force and the government remains committed to improving the country’s economic conditions.
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