The federal government wants to sign a "National Economic Charter" with opposition parties for stability in the economic policies to achieve long-term growth. Addressing the business community on Friday at the Federation House here, Haroon Akhtar Khan, Special Assistant to Prime Minister for Revenue, said a national economic charter is necessary for continuity in the economic policies, which mainly amend or revise with change of political power.
"We have offered the opposition parties to sign an economic charter in the larger interest of the country so that economic policies continue for long-term growth despite change of political government," he said and added that this offer is still valid as our government wants no politics on economic growth.
Haroon said with great efforts of the PML-N government, the economy is moving in a right direction and witnessing microeconomic stability with lower interest and inflation rates, higher foreign exchange reserves and increasing foreign investment. During last three years, Pakistan has become an emerging economy and in 2050 will be ranked 16th largest economy of the world with current momentum of growth, he added.
Even, all international financial institutions and rating agencies are confirming these economic improvements by predicting "stable outlook" for Pakistan's economy and offering financial assistance for development of infrastructure, he maintained.
"Now, the government has focused on the GDP growth. Last year, Pakistan achieved 4.7 percent GDP growth and this year we are expecting 5 percent, while our target is 7 percent GDP to become a developing country," he added.
In order to facilitate industries, development of infrastructure and availability of power and gas is government's top priority. Karachi to Peshawar Motorway will be completed by next year, while loadshedding will also end in mid of 2018 before next general elections, Haroon assured.
Talking on the tax, he said that, tax revenue is also necessary for economic development, however unfortunately tax evasion rate is on higher side in Pakistan. ""In Pakistan, people honestly pay Zakat but don't pay taxes, of which the Federal Board of Revenue (FBR) is compelled to conduct audit to get more tax revenue," he added.
He said presently, Pakistan's tax-to-GDP ratio stands at 12 percent and we want to take it to 20 percent, broadening the tax base instead of higher tax rate.
The Advisor to PM said new tax measures have witnessed positive result and now the number of tax filers is being increased gradually due to imposition of 0.4 percent tax on banking transactions of non-filers. In addition, with some new measurers, another largest sector real estate sector is being documented.
He said soon all banks will accept tax receipts, besides National Bank of Pakistan (NBP). An incentives scheme is under consideration to make the economy documented.
Haroon said preparation of budget will start soon and like previous year, all association and trade bodies will be taken on board on budget. He said Pakistan is going to become a member of international organisation that will enable banks of over 200 countries to share the information by 2018.
However, he showed concern on higher refund claims and said that despite the zero rating of five major sectors, refund claims of initial seven months of this fiscal year are almost equal to previous year. This is shocking as earlier the scheme was rolled back due to this reason, he added.
Advisor to PM said the government has recently announced Rs 180 billion relief package for exports, while incentives for agriculture sector were announced in budget 2017, therefore agri sector is likely to perform well and will contribute to higher GDP growth. Chairman FBR Dr Irshad Khan, President, Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Zubair Tufail, Iftikhar Ali Malik, Sheikh Shakil Dhingra, Hanif Gauhar and others also spoke on the occasion.