(Nov 22, 2019)
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Friday said the country may miss annual revenue target by over Rs650 billion resulting in another mini-budget.
The government should try to improve revenue collection and avoid mini-budget to shield the poor which are already pressed due to inflation, he said.
Mian Zahid Hussain said that the revenue authorities have collected Rs1.28 trillion in the first four months of the current fiscal against the target of Rs1.44 trillion resulting in a deficit of Rs 1.67 trillion.
In this scenario, the annual revenue target may be missed by Rs668 billion which will create problems for the government.
Talking to the business community, the veteran business leader said that realizing the situation the government requested IMF to reduce annual target by Rs300 billion which was turned down.
The former minister noted that the IMF mission is due next month as the dismal position of revenue collection may impede the disbursement of another tranche.
He said that some officials are optimistic about convincing IMF about a review but a plan B is necessary if the IMF refuses to allow any reduction in revenue targets.
The government should try its best to improve its income but the poor should be spared to avoid instability and anger among masses, he said.
The business leader noted that discouraging imports and high interest rates have compressed economy which is also casting its shadow on revenue collection.
A portion of the business community is against inclusion in the documented economy which is also a reason behind the low collection he said.