Finance Minister Announces Crackdown on Middlemen to Reduce Prices

Karachi: Federal Finance Minister Mohammad Aurangzeb has announced a crackdown on price control committees and middlemen, stating that although global prices of pulses, grains, poultry, and petroleum products are declining, there is no reduction in their prices in the local market.
Speaking at a press conference after a meeting at the Overseas Chamber of Commerce and Industry on Saturday, the Finance Minister emphasized that the government will take strict actions regarding price reductions in an upcoming Economic Coordination Committee (ECC) meeting next month. He said, “The government will now make tough decisions on this issue.”
The Finance Minister clarified that no sales tax is being imposed on petroleum products, and highlighted that protests and sit-ins in Islamabad result in a daily loss of Rs. 190 billion to the country. “Government institutions are also causing a daily loss of Rs. 2.2 billion, leading to a total loss of Rs. 6,000 billion over the past 10 years,” he added.
He also mentioned that large-scale smuggling has been reduced significantly due to government actions, and that further strict measures are being implemented in this regard.
The Minister also assured that overseas investors are facing no issues in remitting profits, with foreign investors sending over $2.2 billion in the past two months. He mentioned that overseas investors would assist in various sectors, including privatization, and that investments from several countries are flowing into Pakistan.
Moreover, the government is introducing agricultural taxes and working to eliminate sales tax leakages. Wholesale and retail businesses will be brought into the tax net. The responsibility of the currency market and policy rates lies with the State Bank of Pakistan, he said, adding that the government could only provide recommendations.
Despite a reduction in inflation rates, the Finance Minister acknowledged that the benefits are yet to reach the general public.
In response to a question, he confirmed that Pakistan received $30.5 billion in remittances last year, and that the growth in remittances during the first four months of the current fiscal year has been positive. If the current growth trend continues, remittances are expected to exceed $35 billion by the end of this year.