ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday unveiled a drastically simplified income tax return form for salaried individuals — reducing the number of required fields from 800 to just 40 — as part of the government’s push for a predictable tax regime and accelerated privatisation under its broader structural reform agenda.

Speaking at a conference on “Building a Resilient Public Financial Management Ecosystem”, jointly organised by the Institute of Chartered Accountants of Pakistan (ICAP) and the Chartered Institute of Public Finance and Accountancy (CIPFA), Mr Aurangzeb emphasised that implementation, rather than policy debate, is now the government’s primary focus.

The new tax return form, published on the Federal Board of Revenue (FBR) website for a 40-day public consultation, is expected to benefit nearly 80pc of salaried taxpayers. “Our goal is to make the tax system more people-friendly,” the minister said, urging stakeholders to provide feedback.

Mr Aurangzeb also announced that tax policy-making functions have been shifted from the FBR to the Ministry of Finance, a move aimed at enhancing strategic coherence and improving fiscal governance.

Aurangzeb unveils simplified returns which will benefit 80pc of salaried taxpayers

He called for rational and predictable taxation, warning against ad hoc measures used to plug revenue shortfalls. “Tax policy must be grounded in sound economic reasoning. Erratic decisions have long challenged the domestic industry,” he noted.

The finance minister outlined plans for a new industrial policy aimed at attracting long-term investment and rebuilding investor trust. “Inconsistent past policies have eroded confidence. We’re committed to delivering stable, forward-looking frameworks,” he said.

As part of ongoing reforms, Mr Aurangzeb reaffirmed the government’s commitment to accelerate privatisation, including the merger or closure of loss-making state-owned enterprises to reduce corruption and enhance institutional efficiency.

On trade, he said tariff reforms were underway to address the impact of excessive protectionism, which has hindered the competitiveness of local industries. “We must recalibrate policies to drive innovation and support global integration,” he said.

Highlighting broader national challenges, the minister identified population growth and climate change as the country’s most pressing existential threats. “Climate change is already unfolding in Pakistan. This is not a future concern,” he said, calling on the accounting community to support efforts to mobilise financing for sustainable development.

He also emphasised the importance of aligning Pakistan’s financial systems with international standards and pledged to expedite fiscal reforms to enhance governance and institutional accountability.

ICAP President Saif Ullah reiterated the institute’s commitment to transparency and capacity-building in the public sector. He thanked policymakers, development partners, and industry leaders for their collaboration in advancing governance reforms and embedding ESG principles.

Federal Minister for Climate Change Musadik Malik highlighted the need for sustainable practices, while Privatisation Minister Muhammad Ali shared updates on public financial reforms. Ross Smith, Programme and Technical Director of the International Public Sector Accounting Standards Board (IPSASB), delivered a presentation on promoting transparency through global accounting standards.Other speakers included: ICAP Public Sector Committee Chairman Khalid Rahman; CIPFA Director International Khalid Hamid; SECP Chairman Akif Saeed; Additional Auditor General Dr Iram Anjum Khan; former SBP Governor Shahid Kardar; FBR Member Dr Najeeb Ahmad; former ICAP President Farrukh Rehman; Climate Change Secretary Aisha Humera Chaudhary; SECP Executive Director Musarat Jabeen; State Bank Director Dr Mian Farooq Haq; and Senior Financial Management Specialist Akmal Minallah.

Published in Dawn, August 28th, 2025