Ambassador of Japan to Pakistan, H.E. Mitsuhiro Wada, on Tuesday discussed issues being faced by Japanese automakers in Pakistan with Muhammad Aurangzeb, the Minister for Finance and Revenue.

According to a statement released by the Finance Division, the Japanese envoy called on Muhammad Aurangzeb today (Tuesday).

“Ambassador Wada noted the commitment of the Pakistani government to continue with the implementation of prudent fiscal policies and structural reforms,” read the statement.

Wada informed that presently 80 Japanese companies are operating in Pakistan.

“He highlighted some of the issues being faced by Japanese automakers in Pakistan,” read the statement.

The auto sector in Pakistan remains engulfed in several challenges, including policy instability, limited competition, high taxes and duties, low localisation, infrastructural challenges, and environmental issues.

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Meanwhile, the Japanese envoy appreciated the government’s efforts towards economic revival and expressed his country’s continued support for Pakistan’s initiatives aimed at fostering growth and prosperity.

During the meeting, the Minister for Finance & Revenue welcomed the Ambassador and stated that the government is committed to undertaking reforms to bring macroeconomic stability and sustainability, read the statement.

Aurangzeb stated that increasing the tax-to-GDP ratio remains a priority area.

“In this regard, the government will strive to achieve end-to-end digitization to expand the tax base, bring transparency in the tax system and improve the client experience.”

The federal minister further apprised the Japanese envoy about energy sector reforms.

“While focus would be on reducing the costs in the sector but governance issues of the distribution companies will be addressed through private participation in the management and eventual privatisation,” read the statement.

The Finance Minister informed that agriculture and IT sectors have demonstrated robust growth recently and the Government would make efforts to support these sectors to become growth leaders.

As per the statement, both sides expressed their desire to further enhance bilateral cooperation between Pakistan and Japan, and pledged to work together towards achieving common goals for the benefit of both nations.