Summary GDP growth, which was 3.7 per cent in 2013 has now increased to 4.2 percent, the Board said.
WASHINGTON (Web Desk) – In Pakistan, the number of personal income tax (PIT) filers has increased by more than 200,000 over the last two years due to a variety of measures introduced by the authorities, the International Monetary Fund (IMF) stated in a press release.
“Nevertheless, at around 970,000 as of end-November, the number of active PIT filers is still significantly below the estimated 5.7 million potential taxpayers,” the IMF stated.
The Executive Board of International Monetary Fund has also welcomed improvement in Pakistan‘s economy as a result of economic reforms.
The Board said despite difficult circumstances, Pakistan has made substantial progress in reducing near-term economic vulnerabilities.
“Economic growth gradually increased from 3.7 percent in fiscal year (FY) 2012/13 to 4.2 percent in FY2014/15. During the same period, efforts to reduce power subsidies and raise tax revenue have lowered the budget deficit from 8.4 to 5.4 percent of GDP, although part of this adjustment reflected clearance of quasi-fiscal liabilities in the energy sector in 2013.”
The Board said there is a clear decrease in inflation in the recent years and Pakistan‘s foreign exchange reserves have also shown steady increase.
The IMF board said Pakistan‘s economic competitiveness has been hampered by security issues, a business climate that lags regional peers and a real effective exchange rate appreciation of 17 percent over the past two years.
The directors welcomed Pakistan‘s continued improvement in economic activity and the fiscal and external positions, on the back of low oil prices and strong remittances. They commended the authorities for significantly reducing near-term vulnerabilities in recent years.
They emphasized the need to boost potential growth and enhance the economy‘s resilience and competitiveness. Achieving these objectives will require sustained fiscal consolidation, swift execution of the economic reform program, and a further build-up of international reserves.
Directors stressed the importance of further reducing public debt to more sustainable levels, while preserving room for higher spending on critical infrastructure, educational, and social programs. They welcomed the additional measures taken to close the revenue shortfall and encouraged comprehensive, front-loaded reforms to mobilize revenue, including by
base-broadening, streamlining concessions and exemptions, improving tax compliance, and enhancing coordination with provincial tax authorities.
At the same time, the directors saw a need to continue strengthening frameworks for public debt and financial management, further reducing energy subsidies, and restructuring or privatizing loss-making public enterprises.
Directors also encouraged initiatives to promote gender equality and expand targeted social protection.
