IMF advises tax, energy sector reforms
WASHINGTON: The International Monetary Fund (IMF) has advised Pakistan to expand the tax net apart of speedy reforms in the energy sector, ARY News reported on Wednesday.
In a policy statement, the IMF call the tax to GDP ratio in the South Asian nation extremely low and urged for efforts to boost the ratio.
The international monetary institution has also advised the State Bank of Pakistan to give priority to boost the foreign exchange reserves.
The policy statement of the IMF on Pakistan's economy also highlighted the need of protecting the poor.
The monetary institution said lowering of the fiscal deficit to 5.5 percent is a key achievement.
Moreover, the IMF in its review report predicted a slow growth rate of 3.1 per cent for Pakistan in the current year and an improvement to 3.7pc in the next year.
The IMF projected a steady increase in the rate of inflation. The consumer price index is expected to be 8.8 per cent during the current year, up significantly from 7.4 per cent last year, and the rate may further rise to 9 per cent in 2015.
Likewise, the IMF said, the unemployment rate in Pakistan would remain increase from 6.7pc last year to 6.9pc in the current year and 7.2pc next year.