ISLAMABAD (APP) - Tax to GDP will be increased upto 15-16 per cent, which currently stands at 9.
5 per cent of GDP, to broaden the tax base for socio-economic development in the country.
This was stated by Advisor to Prime Minster on Finance Shaukat Tarin while addressing the 24th annual general meeting and conference of the Pakistan Society of Development Economists (PSDE) here at a local hotel Thursday.
Tarin said that in order to increase tax ratio in the country, it was necessary to improve tax structure and policies in the country adding that structural reforms would be introduced with friendly atmosphere for tax-payers.
For the first time in the history of Pakistan, the government is going to launch house hold survey for the determination of poverty in the country and to fix a certain criteria to determine the poor, he said and added after the completion of this survey the govt would able to develop a safety net to bring out the people living with poverty as according to 9-point government economic reforms strategy.
Our export base is narrow and we have to focus on our manufacturing sector which is being neglected for last many years, he added.
The Advisor said that for speedy industrial growth in the country we have to remove the distortion in the sectors like high utility bills, power shortage and other constraints.
He said that our industrial sector including pharmaceutical, leather and textile have potential to grow further.
He informed that Pakistan can earn $ 5-10b by improving the pharmaceutical sector.
To overcome the power shortage hydro and coal projects would be launched, as there was vast potential to generate power by using the coal reserves in the country.
Tarin said high yielding seeds, sufficient use of water resources and maximum benefit to farmers were the top priority of the government to accelerate the food security in the country.
We have to develop an alternative strategy as against the import led strategy by using our precious work force and resources adding that best skilled and trained work force was available in the country, he said.
The Advisor said, We also need to root out nepotism in the country if we want to improve the performance of our institutions.
Meanwhile, Advisor to PM on Finance Shaukat Tarin on Thursday said Pakistan would not seek IMF funding beyond its need and a decision in this regard would be made after viewing the response at the meeting of Friends of Pakistan (FoP) group.
Talking to mediamen after attending the meeting of Pakistan Society of Development Economics, Tarin said the FoP meeting was scheduled to be held on April 17 and the country would adjust after that its IMF funding demand.
He said the countrys foreign reserves were gradually increasing and if this trend continued there would be little need for more IMF funding.
The amount acquired through this funding is kept in the foreign reserves, he said, adding that the country had to pay an interest of 3.
5-4.
5 per cent on the loans.
So, it would be unwise to pay interest on an amount which is not utilized, he explained.
He said that earlier he had a mind to get $ 4.
5b from the IMF but a final decision in this regard would be made after the meeting of the FoP.