FPCCI urges Pakistan government to avoid IMF loan

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) stressed the need for broadening the tax net to avoid International Monetary Fund's (IMF) assistance programme. President FPCCI Gulzar Firoz said Friday that the Finance Minister Ishaq Dar has already stated that the IMF was dictating harsh conditions for providing assistance. If accepted, it would slow-down economic activity and it may result in large-scale industrial closures and unemployment in the country, he added. Gulzar suggested going after tax evaders and checking rampant corruption in government departments by using National Database and Registration Authority (NADRA) to identify tax-evaders to rise around Pakistani (Rs) 1,000 billion. FPCCI has officially conveyed its reservations over sales tax to the Federal Board of Revenue, he told. The IMF team is currently visiting Pakistan and to assess the credibility of tax collection projections, it has sent a draft of revenue collection measures announced in the budget 2013-14 to Washington. Pakistan's economic team led by the Finance Minister told the IMF team that over Rs 202 billion revenue measures, including Rs 35 billion administrative measures have been taken to achieve the next year revenue collection target of Rs 2,475 billion for the year 2013-14. Rs one equals USD 0.010. Experts would evaluate this claim of the finance team in Washington that may take few days. The IMF delegation led by Jeffery Frank, would stay in Pakistan till July 4 for further talks over the proposed programme.