KARACHI:  Minister for Finance and Revenue Muhammad Aurangzeb has brushed off concerns surrounding government's plans to bring largely under-taxed agriculture sector into revenue net.

"I am grateful to chief ministers for agreeing to legislate taxation on agriculture sector," said Aurangzeb as he addressed state media at Karachi Chamber of Commerce and Industry.  Event's invite was not extended to private media."However, neither you (industrialists), nor International Monetary Fund (IMF) is willing to accept that government will be able to achieve this. "Our hand has now been forced because we have reached level that if we don't expand net and bring under-taxed, untaxed sectors into economy, we are at end of road," he said. Aurangzeb said industrialists and IMF "Were skeptical" regarding imposition of taxes on retailers. "Every segment has to play its part.  If we don't, we will keep going back to industrialists and salaried class for more taxes," he said. Talking about cut in key policy rate, Aurangzeb maintained that "This is prerogative of central bank." "I think it's step in the right direction. He admitted that high interest-rate regime, alongside element of taxation and energy cost are issues that need to be addressed. "Path of growth can only be achieved through permanence of macroeconomic stability," he said.Aurangzeb said that structural issue of Pakistan economy is "As soon we accelerate growth rate, we face balance of payments issue".  He added that export-led growth is only way forward, citing agriculture and IT as potential sectors of growth.He admitted that it is "Failure of government" for not maintaining fiscal discipline "Due to which banks continue to lend to government"."Ultimately, it has to be private sector, which has to lead this country. It has to be private sector credit, which has to come in."Therefore, I have told banks not to go towards directed lending, but continue to lend farmers, SMEs on cash-flow basis," he said.