ISLAMABAD: Federal Minister for Finance Dr Abdul Hafeez Shaikh on Tuesday expressed the firm resolve of government to bring 700,000 tax evaders into tax net, who possess properties and frequently travel abroad but pay no tax.
"We will go after these 700,000 evaders and collect taxes from them as the country cannot progress without tax collection", Dr Hafeez Shaikh said while inaugurating the three-day 27th Annual General Meeting and Conference of Pakistan Society of Development Economists (PSDE) here.
The President of the PSDE and Vice Chancellor of Pakistan Institute of Development Economics (PIDE) Dr Rashid Amjad and Secretary PSDE Musleh Ud Din also spoke on the occasion.
The purpose of event is to provide a forum where leading professionals, economists, policy-makers and other social scientists can exchange ideas on the vital economic and social issues facing Pakistan.
Dr.Shaikh told the forum that the government has initiated reforms in the Federal Board of Revenue (FBR) which are also producing results in the form of higher tax collections.
He said due to prudent economic reforms of the government specially in the FBR, Rs 640 billion have been realized during five months of the current financial year which is 28 percent higher than that of last fiscal year.
He added that the FBR paid refunds of Rs 27 billion to the taxpayers in 2010 while in 2011 Rs 52 billion had been refunded to them.
He said that cases relating to Rs 100 billion tax were stuck up in the courts, which would be realized after the decisions.
The Finance Minister appreciated the Chief Justice of Pakistan for accelerating the hearing of cases.
Dr Abdul Hafeez Shaikh urged the affluent people to come forward and play their vital role by paying due taxes and participate in the nation building process.
The Finance Minister said that the government made an effort to introduce value added tax through legislation but it was strongly opposed by some lobbies.
However, he added that the government abolished zero rating facilities for self- reliance and removed all sale tax exemptions on various sectors, including food, health and education.
He said that the PSDE Forum that when the present government came into power in 2008, the economic growth was stagnant, fiscal deficit was 7.6 percent, currant account deficit was 8.4 percent and inflation was 25 percent. The government had to approach the IMF to stabilize economy.
He added that the government initiated economic stabilization programme and the economy was once again put on the path to recover.
He said due to devastating floods of last year and high international oil prices, Pakistan's economy suffered heavily. The floods cost US $ 10 billion to the national economy and also 2 percent of the GDP.
Dr.Abdul Hafeez Shaikh said that despite shocks Pakistan has performed well on the external front as its exports reached US $ 25 billion and overseas Pakistanis expressed confidence in the democratic government and sent US $ 1 billion per month.
He added that Pakistan foreign exchange reserves have reached US $ 18 billion.
The Minister said that inflation has been brought down from 25 percent in 2008 to 12 percent during the current financial year.
He told the Forum that under 7th NFC award Rs.800 billion have been transferred to provinces in order to empower them financially.
Under the award, the provinces share is now 60 percent while federal government is 40 percent in the revenues, he added.
He added that more resources have been transferred to enable the provinces to spend on human development and social sectors.
He said that under the social safety net to the poor segment of the society, the government introduced Benazir Income Support Programme (BISP) which has also been acclaimed by many at international levels.
The Finance Minister said that under BISP in the year 2010-11 Rs.35 billion were allocated while during the current financial year Rs.65 billion for cash grants to the poor people in the country.
The Finance Minister appreciated PSDC and PIDE for organizing the event to discuss national issues of economic importance.
The President of PSDE and Secretary highlighted the aims and objectives of the conference.
They said "Economic growth and development :New Directions" has been chosen the theme of the conference and the objective was to take the current dialogue on the new development thinking forward and to encourage research on future directions for policy reforms aimed at enhancing the country's long term growth prospects.
They added that international experts are also attending the conference besides participation of students of business and economics and social scientists.
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