Pakistan may not be able to achieve Rs7.47 trillion tax target amid floods

ISLAMABAD: Pakistan may not be able to achieve tax collection target of Rs7,470 billion as the country faces worst devastation from record monsoon spell that has resulted in flash floods nationwide, ARY NEWS reported.

According to sources within FBR, it would be near impossible to achieve tax collection target as stable growth and policy and tax reforms are required for the purpose.

The finance ministry has revised growth rate for the country at 3.3 percent following floods which was previously set at 5 percent.

“The growth rate will slowdown in the ongoing fiscal year following flash floods,” the sources said, adding that it would vastly affect large scale manufacturing and per capita income.

A Finance ministry document has revealed that the economic growth in the country could fall below to 2.3 percent in the ongoing fiscal year 2022-23 after floods caused losses of overRs2,000 billion which included damages to lives, infrastructure, crops and livestock in the affected areas.

According to sources in the ministry, a new strategy would have to be developed to move forward while keeping in view the losses and devastation from the floods.

The economy has suffered an Rs2,000 billion losses owing to floods and the inflation is likely to remain between 25 to 27 percent, the report said. It highlighted that the growth rate was set at 5 percent for FY2022-23 however, it seems difficult to achieve targets set in the annual development plan.

The growth in key crops could likely fall to 0.7 percent from an expected target of 3.9 percent, growth in industrial sector could drop to 1.9 percent from an expected 5.9 percent while growth in services sector could decline to 3.5 percent from an estimated 5.1 percent in the ongoing fiscal year.

Read More: MIFTAH ISMAIL SAYS ‘INFLATION RATE EXPECTED TO GO UP DUE TO FLOODS’

It shared that economy which is already facing issues regarding balance of payment and debts will be hurt further from floods and it could result in hike in inflation. Assistance from friendly countries, and global development partners would be required to give a helping hand to the economy, the report added.