IMF’s Latest Pak Economy Forecast Stress On Fiscal Discipline, Taxes
PKONWEB — The International Monetary Fund (IMF) has projected that the Federal Board of Revenue (FBR) is likely to collect around Rs 5.5 trillion during current fiscal year (2019-2020) which would increase to Rs 7.0 trillion in next year, while in 2021-2022 the revenues would reach to Rs 8.3 trillion and Rs 9.48 trillion in the subsequent year.
Also, the overall revenues of the country will surge to Rs 7.17 trillion in 2019-20 followed by Rs 8.9 trillion in 2020-21, Rs 10.6 trillion in 2021-22, Rs 12.12 trillion in 2022-23, and Rs 13.37 billion in 2023-24.
The IMF estimates in its latest report are all based on policy measures committed by the PTI government and their sustained execution over the next five years.
With less than 1.5 million taxpayers filing tax returns and tax compliance generally very low, tax policy and tax administration measures will center on broadening the tax base and recoveries while maintaining a low tax rate, it added.
The international lending institution has also projected that Pakistan’s exports will increase to US$36.7 billion in five years by the year 2023-24.
The pressure of current account deficit on the country will also ease out gradually from its peak US$19.9 billion in 2017-18 to as low as $6.95 billion in current fiscal year and US$5.49 billion in 2020-21, said the IMF in its recently published staff report on Pakistan.
The trade deficit would also decline to US$24.9 billion in current fiscal year from US$29.46 billion in 2018-19, however it will further go up to US$26.8 billion mainly on the back of growing import needs in coming years.
Based on APP report.