Economy crisis: 'Budget deficit more than Rs600b'

FBR chairman says Pakistan is running on loans and everyone will have to pay tax to steer it out of current crisis.

Federal Board of Revenue (FBR) Chairman Salman Siddique said that the country is facing an unannounced economic emergency as budget deficit has swelled to more than Rs600 billion, reported Express 24/7 Saturday.

Addressing a meeting in the Lahore Chamber of Commerce, the FBR chairman painted a gloomy picture of Pakistan's economic condition.

He said that Pakistan is running on loans and everyone will have to pay tax to steer the country out of the current crisis.

Siddique informed the Lahore Chamber that the board is establishing a new system to check tax evasion in future.

He added that tax evasion in Pakistan leaves the state with no option but to borrow money from lenders, such as the International Monetary Fund (IMF).

The chairman warned that Pakistan would have to approach the IMF if the situation persists.

He further informed that the collected amount which stands at Rs15, 058 billion has been spent on defense and other development projects.