ISLAMABAD – Advisor to the Prime Minister on Finance, Revenue and EconomicAffairs Dr Abdul Hafeez Shaikh said the upcoming budget for the fiscal year2019-20 would come with austerity measures to reduce the governmentexpenditures, adding that civilian, military and private sector wouldcontribute in reducing fiscal expenditures.
Dr. Abdul Hafeez Shaikh Saturday unveiled government’s short and long termeconomic roadmaps, focusing on fiscal consolidation and revenuemobilization, to put the economy on growth trajectory after steering itthrough the stabilization phase of one year.
The advisor was addressing an exclusive press conference here. He wasflanked by Federal Minister for Planning, Development and Reform MakhdoomKhusro Bakhtiar, Special Assistant to Prime Minister on Information FirdousAshiq Awan, Minister for Power Division Omar Ayub Khan, State Minister forRevenues, Hammad Azhar and other senior government officials.
The advisor said that the next year would be the year of stabilization forthe economy, during which the focus would be on saving the economy fromdifferent vulnerabilities and after achieving the target of stabilization,the journey for growth would start. He said that the government had alsodevised a comprehensive mechanism for gradual reduction of electricitylosses from current Rs38 billion per month to zero by 2020.
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Hafeez Sheikh said that the Federal Board of Revenue (FBR) would be givenRs5.5 trillion revenue collection target for the next year and this targetcould be achieved by taking many strategic measures. He said that enhancingtax collection was imperative to provide relief to the vulnerable segmentsof society with the provision of subsidies in different sectors.
The finance advisor said that Pakistan was having lowest tax to GDP ratioin the region, which is just 11 percent compared to 16-20 percent in theregional countries.
