Islamabad: The Minister of Finance, Muhammad Aurengzeb, presented on Wednesday a drastically simplified income tax declaration form for salaried individuals, reducing the number of required fields from 800 to only 40, as part of the government’s impulse by a predictable tax regime and accelerated privatization under its broader structural reform agenda.
Speaking at a conference on “Building a resistant public financial management ecosystem”, organized jointly by the Pakistan Public Accountants Institute (ICAP) and the Public Finance and Public Accounting Institute (CIPFA), Mr. Aurengzeb emphasized that the implementation, instead of policy debate, is now the main approach of the Government.
The new Tax Declaration Form is expected to be published on the website of the Federal Income Board (FBR) for a 40 -day public consultation, benefit almost 80 % of salaried taxpayers. “Our goal is to make the fiscal system more friendly for people,” said the minister, urging interested parties to provide comments.
Aurengzeb also announced that fiscal policy formulation functions have changed from the FBR to the Ministry of Finance, a movement aimed at improving strategic coherence and improving tax governance.
Aurengzeb presents simplified yields that will benefit 80 percent of salaried taxpayers
He requested rational and predictable taxes, warning against ad hoc measures used to plug income deficits. “Fiscal policy should be based on solid economic reasoning. Erratic decisions have long challenged the national industry,” he said.
The Minister of Finance described the plans for a new industrial policy aimed at attracting long -term investments and reconstructing investor confidence. “Past inconsistent policies have eroded confidence. We are committed to delivering stable frames and with a vision of the future,” he said.
As part of the current reforms, Mr. Aurengzeb reaffirmed the government’s commitment to accelerate privatization, including the merger or closure of state companies that make losses to reduce corruption and improve institutional efficiency.
In commerce, he said that tariff reforms were underway to address the impact of excessive protectionism, which has hindered the competitiveness of local industries. “We must emphasize policies to boost innovation and support global integration,” he said.
Highlighting broader national challenges, the minister identified population growth and climate change such as the most pressing existential threats in the country. “Climate change is already developing in Pakistan. This is not a future concern,” he said, asking the accounting community to support efforts to mobilize financing for sustainable development.
He also emphasized the importance of aligning Pakistan’s financial systems with international standards and promised to accelerate tax reforms to improve governance and institutional responsibility.
The president of ICAP, Saif Ullah, reiterated the institute’s commitment to transparency and the construction of capacity in the public sector. He thanked the policy formulators, development partners and industry leaders for their collaboration in the progress of governance reforms and integrate the principles of ESG.
The Federal Minister of Climate Change, Musadik Malik, highlighted the need for sustainable practices, while Privatization Minister Muhammad Ali shared updates on public financial reforms. Ross Smith, Program Director and Technician of the International Board of Public Sector Accounting Standards (IPSASB), offered a presentation on the promotion of transparency through global accounting standards. Other speakers included: President of the ICAP Public Sector Committee Khalid Rahman; Director of Cipfa International Khalid Hamid; The president of SECP, Akif Saeed; Additional General Auditor Dr. Iram Anjum Khan; Former SBP Shahid Kardar governor; FBR Dr. Najeb Ahmad member; former president of ICAP, Farrukh Rehman; Secretary of Climate Change Aisha Humera Chaudhary; Executive Director of SECP Musarath Jabeen; Director of the State Bank Dr. Mian Farooq Haq; and senior specialist in Financial Management Akmal Minallah.
Posted in Dawn, August 28, 2025
