The Pakistani government on Wednesday assured the International Monetary Fund (IMF) of privatisation of Pakistan Steel Mills (PSM), Pakistan International Airlines (PIA) and State Life Insurance Corporation of Pakistan (SLIC) in the ongoing year.
Pakistan has provided a roadmap of the privatisation spree under IMF’s Economic Reforms Programme.
According to the blueprint, steel mills would be privatised by September 2016, while by June, at least 26 per cent shares of the national airlines would also be sold.
Meanwhile, the government is also planning to sell 10 per cent to 15 per cent shares of State Life Insurance, Kot Addu Power Company’s 40 per cent and Mari Petroleum Limited’s 18 per cent shares in the ongoing year.
Meanwhile, the number of Personal Income Tax (PIT) filers has increased by more than 200,000 over the last two years in Pakistan due to a variety of measures introduced by the authorities.
The Executive Board of International Monetary Fund has also welcomed improvement in Pakistan`s economy as a result of economic reforms, reported a private news channel quoting IMF statement.
The board said despite difficult circumstances, Pakistan has made substantial progress in reducing near-term economic vulnerabilities.
“Economic growth gradually increased from 3.7 per cent in fiscal year (FY) 2012/13 to 4.2 per cent 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 per cent of GDP, although part of this adjustment reflected clearance of quasi-fiscal liabilities in the energy sector in 2013.”
The board said that there was a clear decrease in inflation in the recent years and Pakistan`s foreign exchange reserves had also shown steady increase.
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.
The board lauded steps of the government to increase revenue collection and decreasing subsidy on electricity. The IMF Board also appreciated restructuring of institutions running in losses.
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 programmes.
They welcomed the additional measures taken to close the revenue shortfall and encouraged comprehensive, front-loaded reforms to mobilise revenue, including broadening the base, streamlining concessions and exemptions, improving tax compliance and enhancing coordination with provincial tax authorities.