Summary Second three months of the current financial year missed tax-collection target by 22 billion rupees
ISLAMABAD: (Dunya News) – International Monetary Fund (IMF) has on Tuesday advised Pakistan to reduce subsidy on electricity. In its report on Pakistan’s economy, IMF has stated that Pakistan fell short of its tax-collection target in the second three months of the current financial year by 22 billion rupees. It also said that Pakistan faced security issues and threat of political instability.
According to IMF report, Pakistan’s GDP growth will remain 4.3% this year while inflation will remain at 5%. The report said that reduction in oil prices would bring the inflation and exports down. The report also said that the exports would fall due to reduction in cotton prices as well.
IMF suggested Pakistan to improve its tax net and administrative machinery. It also gave new targets for Pakistan economy for the coming year. According to the officials, subsidy on electricity may fall down by 80 billion rupees in the coming fiscal year. Tariff will be revised for minimizing the losses on electricity while tax evaders are also expected to face tougher scrutiny.
