Prime Minister Shahbaz Sharif has issued directives to curb significant tax pilferages, notably the leakage of nearly Rs1.2 trillion in customs duty at the Karachi Port. These resources, he emphasized, are essential for providing relief, supporting development projects, and managing civil government operations.
During a recent Cabinet meeting, Prime Minister Sharif expressed the government’s awareness of the hardships faced by the common man due to rising prices of essential goods, increased electricity tariffs, and higher taxes. He announced that Rs50 billion from the development budget had been reallocated to offer relief to low-income consumers impacted by these price hikes and tariff increases.
The Prime Minister highlighted the urgent need to plug tax leakages, especially the substantial customs duty evasion at the Karachi Port. By addressing these issues, the government could utilize these funds for critical areas such as relief measures, development projects, and even running the civil government, which currently costs around Rs890 billion.
To create additional fiscal space, Prime Minister Sharif instructed the Ministry of Finance to adopt further measures that would enable more public relief in the coming months. He stressed the importance of all government institutions working cohesively to ensure that the ongoing IMF program would be Pakistan’s last, signaling a commitment to sustainable economic reforms.
Prime Minister Sharif expressed confidence in the ongoing structural reforms targeting taxation, energy, financial management, and public sector enterprises. He believes these reforms will ultimately reduce federal expenditure and the size of the government, setting Pakistan on a path towards economic stability.
He is personally overseeing the process of downsizing and rightsizing government operations, emphasizing that delays in meeting timelines for these reforms will not be tolerated. This commitment is part of a broader effort to streamline government functions and improve efficiency.
During the meeting, it was noted that the “Sindh Infrastructure Development Company” had been renamed as the “Pakistan Infrastructure Development Company.” This rebranding aims to establish a viable alternative to the Public Works Department (PWD). The Prime Minister pointed out that the shipping sector, particularly entities like the Pakistan National Shipping Corporation, remains a significant liability for the government, despite its potential.
Underperforming entities like these not only drain the national exchequer but also divert resources away from crucial development projects in health, education, infrastructure, and water sectors. The Prime Minister stressed the need for reforms to address these inefficiencies and reallocate resources to more productive uses.
The Prime Minister directed the Minister for Commerce to develop a comprehensive plan to achieve an ambitious export target of $60 billion. He also instructed the Minister of State for Information Technology and Telecommunication to enhance IT exports to $25 billion over the next three years.
Prime Minister Sharif praised the performance of various ministers, including the Minister for Energy, Minister for Finance, Minister for Economic Affairs, Chief Minister of Balochistan, and the Secretary of the Power Division. He highlighted the government’s progress in initiating the solarization of 28,000 tubewells in Balochistan, a move expected to provide significant relief to farmers and save billions in foreign exchange.
The Cabinet was also informed about new scholarship programs aimed at offering thousands of scholarships for higher studies abroad. These programs will prioritize students from less developed areas, ensuring that education opportunities are accessible to all regions of the country.
