Provinces to get devolved ministries

PM wants tax-to-GDP ratio at 15% in next five years

ISLAMABAD:

Prime Minister Shehbaz Sharif on Thursday directed that a comprehensive plan for increase in revenue should be prepared without putting burden on the common man.

While chairing a meeting on the Ministry of Finance, he said in the next five years the tax-to-GDP ratio would be taken to 15 per cent.

He said the federal government would strengthen the provinces and would hand over all the relevant ministries and departments to the provinces under the 18th amendment, adding expenditure would be reduced to decrease fiscal deficit.

He directed to speed up the process of reforms and privatisation of the state-owned institutions, especially those which were running in losses.

He said the public-private partnership should be initiated with private operators to improve the services at all the large airports of the country.

The prime minister said the government was fully focused on gradually decreasing the public debt, pension and subsidy reforms and reforms and privatisation of the state-owned entities.

He said the conclusion of the standby programme with the International Monetary Fund was a positive development, adding the government would make full effort for the next programme with the IMF.

He said a detailed plan should also be presented for decrease in external debt. The services of international experts should be hired for achieving economic progress, he added.

The meeting was briefed about revenue, taxes, fiscal deficit, foreign exchange reserves, remittances and current account.

The participants of the meeting were also informed about the progress on the implementation on issues of revenue, subsidies, power sector reforms and on the instructions of the prime minister to reduce government expenditure.

Federal ministers Muhammad Aurangzeb, Ahad Khan Cheema, Dr Musadiq Malik, Ahsan Iqbal, Deputy Chairman Planning Commission Jehanzeb Khan, Coordinator of Prime Minister Rana Ihsaan Afzal and relevant officers attended the meeting.