Pakistan has made a strong commitment to fiscal responsibility by pledging to avoid tax amnesty schemes in the upcoming fiscal year (2024-25). This move aligns with their letter of intent submitted to the International Monetary Fund (IMF) and emphasizes their dedication to achieving long-term financial stability.
- No Tax Amnesty: Pakistan has committed to refraining from tax amnesty programs in fiscal year 2024-25.
- Fiscal Consolidation: The government aims to achieve a primary budget surplus (excluding grants) of PKR 401 billion (0.4% of GDP) in 2024 and maintain this focus in subsequent years.
- Revenue Mobilization: Efforts will be directed at broadening the tax base, particularly in undertaxed sectors. Initiatives include: Registering and collecting taxes from non-filing retailers and supply chain operators. Implementing policy reforms to improve tax collection efficiency. Incentivizing provincial tax collection efforts.
- FBR Reforms: Plans to modernize the Federal Board of Revenue (FBR) are on the agenda, incorporating best practices and digitalization initiatives to enhance transparency, revenue collection, and taxpayer experience.
- Budget Transparency: The government pledges to strengthen the budget process by: Improving credibility and transparency. Eliminating supplementary grants that could undermine fiscal discipline.
- Limited Guarantees: Guarantees issued by the government will be restricted to predetermined amounts.
- Sustainable Fiscal Policies: By prioritizing these measures, Pakistan aims to build a robust economic foundation for future growth and development.
Pakistan's commitment to fiscal discipline is a positive step towards achieving economic stability. Collaboration with international partners, domestic stakeholders, and continued focus on creating an investment-friendly environment are crucial for success. This strategy emphasizes responsible fiscal practices while promoting equitable economic opportunities for Pakistani citizens.
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