ISLAMABAD: Prime Minister Yousuf Raza Gilani has said the government would not raise electricity tariffs any time soon and nor would the subsidy on electricity be removed. The premier did however say the government was reviewing the imposition of Value Added Tax (VAT) for increasing revenue.
‘Steps have been taken by the Government of Pakistan (GoP) to implement macro economic reforms such as phased removal of subsidies on petroleum and power prices, tightening of monetary policy, increasing revenue and controlling expenditures while reducing borrowing from the State Bank,’ said the premier while talking to IMF’s Mission Chief for Pakistan Adnan Mazarei and Resident IMF Representative in Pakistan Paul Ross who called on him at the PM House.
While dilating upon government’s achievement in successfully increasing the Tax to GDP ratio from 8.8 to 10.6 per cent in one year, the prime minister expressed his government’s firm commitment to enhance the ratio to the level of 15 per cent in the next five years by broadening the tax base. He further said that through stringent fiscal measures, the government had successfully brought down the fiscal deficit from 7.6 per cent to 5.2 per cent.
The prime minister said that steps had been taken to improve the power situation in the country by installing new power plants as well as tapping alternate energy sources besides encouraging conservation of energy.
Gilani said the government would not raise electricity tariffs and neither would the subsidy on electricity be removed, according to sources. However, the premier said the government was reviewing the imposition of Value Added Tax for increasing revenue and a decision in this regard would be taken after taking all stake holders on board.
Adnan Mazarei appreciated that the GoP had taken difficult decisions in difficult times. He said that the IMF Board had fully acknowledged the achievements of GOP in enhancing tax to GDP ratio, reducing inflation and improving the overall economic situation by adopting right economic policies.
The meeting was also attended by Federal Minister for Finance Shaukat Tareen, Minister of State for Finance and Economic Affairs Hina Rabbani Khar, Special Secretary Finance and Chairman FBR.—Online
‘Steps have been taken by the Government of Pakistan (GoP) to implement macro economic reforms such as phased removal of subsidies on petroleum and power prices, tightening of monetary policy, increasing revenue and controlling expenditures while reducing borrowing from the State Bank,’ said the premier while talking to IMF’s Mission Chief for Pakistan Adnan Mazarei and Resident IMF Representative in Pakistan Paul Ross who called on him at the PM House.
While dilating upon government’s achievement in successfully increasing the Tax to GDP ratio from 8.8 to 10.6 per cent in one year, the prime minister expressed his government’s firm commitment to enhance the ratio to the level of 15 per cent in the next five years by broadening the tax base. He further said that through stringent fiscal measures, the government had successfully brought down the fiscal deficit from 7.6 per cent to 5.2 per cent.
The prime minister said that steps had been taken to improve the power situation in the country by installing new power plants as well as tapping alternate energy sources besides encouraging conservation of energy.
Gilani said the government would not raise electricity tariffs and neither would the subsidy on electricity be removed, according to sources. However, the premier said the government was reviewing the imposition of Value Added Tax for increasing revenue and a decision in this regard would be taken after taking all stake holders on board.
Adnan Mazarei appreciated that the GoP had taken difficult decisions in difficult times. He said that the IMF Board had fully acknowledged the achievements of GOP in enhancing tax to GDP ratio, reducing inflation and improving the overall economic situation by adopting right economic policies.
The meeting was also attended by Federal Minister for Finance Shaukat Tareen, Minister of State for Finance and Economic Affairs Hina Rabbani Khar, Special Secretary Finance and Chairman FBR.—Online