Aurangzeb says their unique structure necessitates comprehensive change in service system
\n Islamabad
\nFinance Minister Muhammad Aurangzeb on Thursday stated that the military\u2019s pension structure is unique, requiring a complete overhaul of its service structure, and announced one year for implementing new pension regulations.
\nHe stated that their unique structure necessitates a comprehensive change in their service system, with a one-year timeframe to adopt new pension laws.
\nAccording to Express News, he said this at the National Assembly\u2019s Finance Committee meeting, chaired by Syed Naveed Qamar, on Thursday. The meeting included a briefing on ongoing negotiations with the International Monetary Fund (IMF).
\nThe minister pointed out the heavy burden pensions place on the national treasury, with Rs1 trillion spent annually. He announced the introduction of new schemes in the budget to reduce pension costs, including a voluntary pension scheme for new employees.
\nThe finance minister informed the committee that all macroeconomic indicators showed positive trends in the previous fiscal year, with inflation decreasing.
\nHe noted that difficulties arose in 2023 when the IMF program was suspended, particularly regarding the repatriation of profits by investors. However, the situation has significantly improved.
\nAurangzeb highlighted that the International Finance Corporation (IFC) provided a $400 million loan to PTCL. He assured that there are no longer import restrictions, and there is no pressure to artificially suppress any commodities.
\nHe further emphasised the stabilisation of the forex market and the goal to increase the tax-to-GDP ratio to 13%, as the IMF indicates that no country can sustain a 9% tax-to-GDP ratio.
\nAurangzeb expressed gratitude to provincial finance ministers for their support of agricultural income tax and stressed the importance of bringing everyone into the tax net, aligning with the IMF\u2019s demand for taxation on actual income.
\nHe mentioned efforts to increase public trust in the Federal Board of Revenue (FBR) with Rs60 billion in additional refunds issued last fiscal year.
\nHe highlighted that government expenditures are significantly impacted by debt and interest payments and suggested promoting public-private partnerships for development budgets.
\nThe finance minister also reiterated introducing austerity measures to reduce government expenses, including the dissolution of five ministries and the decision to shut down the Public Works Department due to financial losses.
\nAurangzeb concluded by noting the positive progress in negotiations with the IMF and expressed confidence that an agreement would be reached within the current month.<\/p>\n","protected":false},"excerpt":{"rendered":"
Aurangzeb says their unique structure necessitates comprehensive change in service system Islamabad Finance Minister Muhammad Aurangzeb on Thursday stated that the military\u2019s pension structure is unique, requiring a complete overhaul of its service structure, and announced one year for implementing new pension regulations. He stated that their unique structure necessitates a comprehensive change in their […]<\/p>\n","protected":false},"author":2,"featured_media":417135,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-417851","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n