ISLAMABAD – The International Monetary Fund (IMF) has further squeezedPakistan on the issue of tax collection to stabilise economy.
As per media report, IMF has asked the government to raise its revenuecollection on a short-term basis to steady the economy.
In comments about the supplementary (second amendment) finance billannounced by the government in parliament last week, IMF Resident Chief inPakistan Teresa Daban Sanchez said the IMF was still assessing it, reportsan English daily*.*
Ms Sanchez stated, “Our understanding is that it includes a set of tax,administrative and regulatory measures aimed at lifting distortions thatcould foster private sector activities.
Further measures are needed to increase revenue collection in the shortterm to support efforts to stabilise the economy.”
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However, the finance minister Asad Umar in a press conference on Thursdayadmitted that the supplementary budget and economic reforms will not have amajor impact on the budget and current account deficit.
Mr Umar admitted that there was a shortfall in revenue collections duringthe first five months of the current fiscal year owing to a reduction inpetroleum prices and cell-phone card taxes.
He added that the measures being taken via the mini-budget as perprojections of the Federal Board of Revenue (FBR), would cause a revenueshortfall of Rs 6.8 billion.
