Federal Finance Minister Muhammad Aurangzeb on Monday dismissed criticism of the Federal Board of Revenue’s (FBR) expanded authority, labeling it as “propaganda” and asserting that the measures were legally approved to combat large-scale sales tax fraud. Speaking at the Overseas Investors Chamber of Commerce and Industry (OICCI), he emphasized that the new powers were enacted through proper legislative channels, including approval by the National Assembly and consultation with the Standing Committee.
Aurangzeb clarified that the FBR’s enhanced powers target only cases involving tax evasion exceeding Rs50 million and are not intended to burden ordinary businesses. “These legal provisions are strictly aimed at curbing fraudulent sales tax activities,” he said. To address concerns, the government will hold a meeting with chamber of commerce presidents tomorrow to explain the rationale and scope of these measures.
The finance minister stressed the need for stronger collaboration between local and foreign investors to drive economic recovery. Highlighting efforts to boost investor confidence, he revealed that the government had disbursed $2.3 billion in profits to multinational companies and pledged to resolve pending refund issues promptly. Additionally, OICCI leadership has been invited to meet Prime Minister Shehbaz Sharif in Islamabad to discuss further investment-friendly policies.
Aurangzeb also noted positive economic trends, including strong remittance inflows and improving macroeconomic indicators. He disclosed that Rs75 billion in sales tax refunds had been processed this month, underscoring the government’s commitment to easing business operations. Efforts to privatize or restructure loss-making state-owned enterprises (SOEs) were also mentioned as part of broader reforms to stabilize Pakistan’s economy.
