ISLAMABAD: Dr. Shamshad Akhtar, the Caretaker Finance Minister, shared that the Federal Board of Revenue (FBR) exceeded the tax collection target set by the International Monetary Fund (IMF) for the first quarter of the current fiscal year, during her address to the Korangi Association of Trade and Industry (KATI) in Karachi.
The minister emphasized that Pakistan was progressing well within the IMF program, and she anticipated an influx of additional funds from multilateral financial institutions once the next IMF tranche was approved. Dr. Akhtar announced that the IMF mission would be arriving early next month to evaluate the program’s implementation.
She highlighted an improvement in economic growth, citing that enhanced agricultural output would contribute significantly to the GDP. However, she noted that substantial growth in industrial activity was still pending.
Dr. Akhtar mentioned that the rupee had appreciated by 8%, and the interbank dollar rate had stabilized at Rs279. This appreciation was attributed to measures to curb smuggling and enhanced border management. She also stressed the importance of regulating exchange companies to prevent misuse of currency, emphasizing the collective responsibility of all institutions in combating smuggling and illegal transactions.
While acknowledging that inflation had not been fully controlled, Dr. Akhtar explained that Pakistan’s open economy was susceptible to immediate external influences, including the impact of the conflict in Ukraine on oil prices and commodities.
Regarding interest rates, she clarified that the State Bank of Pakistan (SBP) determined them, and the results were reflected in improvements in the country’s current account.
Dr. Akhtar also discussed an “economic recovery plan” aimed at achieving sustainable growth and emphasized the significant role that small-scale industries could play in this recovery.
In the realm of the capital market, she mentioned recent reforms on the Pakistan Stock Exchange (PSX), which were expected to yield positive outcomes. She encouraged the business community to explore options for raising funds from the stock exchange rather than traditional banks.
FBR Chairman Amjad Tiwana reported that ongoing efforts were focused on the reform and restructuring of the FBR, as well as expanding the tax base. Collaboration with other institutions, including the National Database and Registration Authority (NADRA), was underway, and agreements had been signed with foreign institutions for digitization. He revealed that 1.2 million new taxpayers had been added, surpassing the target of 0.7 million.
