ISLAMABAD: The number of Personal Income Tax (PIT) filers has increased by more than 200,000 over the last two years in Pakistan due to a variety of measures introduced by the authorities.
The Executive Board of International Monetary Fund has also welcomed improvement in Pakistan`s economy as a result of economic reforms, reported a private News channel quoting IMF statement.
The Board said despite difficult circumstances, Pakistan has made substantial progress in reducing near-term economic vulnerabilities.
“Economic growth gradually increased from 3.7 percent in fiscal year (FY) 2012/13 to 4.2 percent in FY2014/15. During the same period, efforts to reduce power subsidies and raise tax revenue have lowered the budget deficit from 8.4 to 5.4 percent of GDP, although part of this adjustment reflected clearance of quasi-fiscal liabilities in the energy sector in 2013.”
The Board said there was a clear decrease in inflation in the recent years and Pakistan`s foreign exchange reserves have also shown steady increase.
The directors welcomed Pakistan`s continued improvement in economic activity and the fiscal and external positions, on the back of low oil prices and strong remittances. They commended the authorities for significantly reducing near-term vulnerabilities in recent years.
Directors stressed the importance of further reducing public debt to more sustainable levels, while preserving room for higher spending on critical infrastructure, educational, and social programmes.
They welcomed the additional measures taken to close the revenue shortfall and encouraged comprehensive, front-loaded reforms to mobilize revenue, including base-broadening, streamlining concessions and exemptions, improving tax compliance, and enhancing coordination with provincial tax authorities.