Finance Minister Mohammad Ishaq Dar said on Tuesday that Tax and energy reforms are a must for economic stability of the country.
In an interview, he said that enhanced tax collection was the only way out to overcome Rs 40 billion tax shortfall recorded during first quarter of current fiscal year 2015-16.
Dar said that Rs 40 billion taxes would be levied on luxury commodities used by the rich and that they would not affect poor and middle class people.
He said that development budget had been increased from Rs 316 billion to Rs 700 billion. The minister said that there would be no cut on development funds to meet the tax shortfall.
Ishaq Dar said the government had strived to achieve economic stability particularly during first two years of its tenure which also helped restore the confidence of international financial institutions.
He said that $500 million would be received from the World Bank during the current month.