ISLAMABAD: Parliamentary Secretary for Finance Saad Waseem Sheikh reassured the National Assembly that No New Taxes the government has no plans to impose additional taxes despite a revenue collection shortfall of Rs386 billion. Efforts are underway to meet the fiscal year’s revenue target without burdening the public with new taxes.
Government’s Plan to Address Revenue Shortfall No New Taxes
During the Question Hour, MNA Mehreen Razak Bhutto inquired about the Federal Board of Revenue’s (FBR) strategy to bridge the tax collection gap. In response, Saad Waseem acknowledged the shortfall but affirmed that the government would rely on alternative measures rather than imposing new taxes.
Debt Management and Economic Stability No New Taxes
In a written response to Dr. Nafisa Shah’s question about debt management, the Ministry of Finance stated that the government is focusing on sustainable public debt policies. Key highlights include:
- A primary surplus is being generated due to economic stabilization policies.
- The exchange rate has stabilized, and interest rates have been significantly reduced by the State Bank of Pakistan (SBP), owing to declining inflation.
- These factors are expected to put public debt on a downward trajectory.
Key Debt Statistics No New Taxes
- Government Debt-to-GDP Ratio: Reduced from 74.9% in June 2023 to 67.5% in June 2024.
- Domestic Debt: The government retired PKR 1.7 trillion in securities, while the remainder was serviced and refinanced.
- External Debt Rollover: $4 billion rolled over in the first half of FY25, with an additional $5 billion expected in the second half.
- Average Time to Maturity (ATM): Increased from 2.7 years in June 2024 to 3.3 years in December 2024, reducing gross financing needs.
- Projected Savings: Effective debt management and declining interest rates could save Rs1 trillion in interest payments this year.
Additionally, the government is advancing toward the issuance of green sukuk in the domestic market and Panda Bonds in China’s capital markets to secure cheaper funding options compared to traditional borrowing methods.
Agriculture Census and Economic Developments
Parliamentary Secretary for Planning and Development Wajiha Qamar announced that the first phase of the Seventh Agriculture Census has been completed. The census, estimated at Rs448.5 million, aims to drive policy decisions for agricultural growth. Data collection is set to conclude by February 2025, with results expected by May 2025.
Pakistan’s Rice Exports to EU Remain Unaffected
In response to concerns about Pakistan’s rice exports, the Commerce Ministry clarified that the European Union (EU) has not banned Pakistani rice imports. While 32 shipments were intercepted due to non-compliance with stringent sanitary and phytosanitary (SPS) standards, such inspections are routine and not exclusive to Pakistan.
https://www.thenews.com.pk/print/1282997-no-new-taxes-despite-rs386bn-shortfall-na-told
