Fiscal consolidation of Rs3.2tr sought | The Express Tribune
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ISLAMABAD: The interim government has finalised its strategy to revive the economy, focusing on increasing taxes on key sectors, reducing pro-growth and general expenditures, and ending distortions in the energy sector through price adjustments and privatisation. The Economic Revival Plan, spearheaded by Dr Shamshad Akhtar’s finance ministry, proposes a comprehensive fiscal consolidation of over 3% of the GDP or Rs3.2 trillion for the current fiscal year, as per government sources. This consolidation is intended to be achieved by eliminating tax exemptions worth Rs1.3 trillion and realising savings of Rs1.9 trillion in expenditures, including returning government funds to the central bank account. The government has also introduced a wealth tax on movable assets. In the medium term, the Federal Board of Revenue (FBR) has put forward a plan to increase tax collection to Rs13 trillion within two years by elevating the current low tax-to-GDP ratio to 15% by the end of the...