Finance Minister Dr Abdul Hafeez Sheikh on Thursday said Pakistan would consider all options in the upcoming talks with the International Monetary Fund (IMF), as the repayment of $1.2 billion is scheduled for February next year. Addressing probation officers of the Foreign Services Group at the Foreign Services Academy, he said the cost of borrowing could increase for Pakistan if the country could not pay the loans back in time.
“Pakistan will stick to its words and all international commitments, including those with the IMF, will be honoured,” he said. The minister said stern action would be taken against those involved in the figure fudging scam by the Federal Board of Revenue (FBR). Field officers have reported gross tax revenue figure of Rs 1,590 billion that included refunds, instead of net tax revenue figures of Rs 1,550 billion. The government is taking measures to widen the tax net and the FBR had identified 0.7 million people who were enjoying lavish life style without paying any tax.
“The FBR is issuing these people tax notices to register and pay taxes regularly,” Shaikh said. He said the government was facing difficulty in attracting investment because of the law and order.“In the last few years, the government’s size has expanded and burdened the economy. The government is trying to decrease its expenditure and increase revenue,” the minister said. He added that loss-making public sector enterprises should be privatised, as the economy could not bear with their losses each year.
He said the trade volume with the rest of the world should be increased in order to strengthen the economy, adding that the development of a country depended on its level of trade and political relationship with the world. Shaikh said despite devastating floods and terrorism, the exports increased to over $24 billion against a target of $22 billion, however, the volume was not enough and efforts were needed to enhance it further.
