ISLAMABAD: On Monday, Finance Minister Muhammad Aurangzeb emphasized the crucial role of the private sector in leading Pakistan's economic recovery and restoring public trust in government policies.

His comments were made during a Senate session addressing the country's economic challenges. Aurangzeb highlighted the necessity of rebuilding public confidence as a cornerstone for advancing the economy. "We cannot make significant progress until public trust is restored. The private sector must take the lead in driving the country forward," he asserted. He noted that the government has managed to achieve currency stability and maintain single-digit inflation in the current fiscal year. Additionally, exports have shown improvement in July and August. In response to a question from Senator Shibli Faraz about a shortfall in tax collection, Aurangzeb acknowledged the gap, stating, "We are currently Rs98 billion short in tax revenue. Despite this, private sector credit has increased by half a trillion rupees." He stressed the importance of maintaining fiscal discipline and reiterated that the government's role is to support and empower the private sector rather than manage businesses directly.

Aurangzeb also underscored the importance of digitalizing the Federal Board of Revenue (FBR) to enhance trust in the tax system. "Restoring confidence in the tax authority is vital. Development is impossible without tax revenue. This country cannot rely on charity; taxes are essential for progress," he explained. Concluding his remarks, Aurangzeb pointed out that institutional reforms are key to ensuring that the current IMF programme could potentially be the last one Pakistan needs. He stressed that sustainable economic development relies on effective governance, private sector leadership, and robust tax collection systems. Aurangzeb's statements reflect a clear call for greater involvement from the private sector in driving economic growth and addressing fiscal challenges. His focus on restoring public trust and improving tax administration highlights the broader strategy to stabilize Pakistan's economy and reduce reliance on international financial assistance.