Finance ministry directed to control fiscal deficit, inflation

Prime Minister Yousaf Raza Gilani told corruption in Federal Board of Revenue (FBR) decreased.

ISLAMABAD: Prime Minister Yousaf Raza Gilani has directed the ministry of finance to increase countrywide collections in order to minimise dependence on foreign loans and set the country on the path of self-reliance.

Gilani, during a high-level meeting headed by him, instructed the ministry to control inflation and ensure that fiscal austerity is implemented. He said that the ministry must become a role model for other ministries in this regard.

He further instructed the finance team to complete the restructuring process for the eight public sector enterprises that had been identified earlier and told them to give a timeframe for the completion of the process.

During the meeting, the economic affairs division told the prime minister that the country received $3.625 billion in foreign aid last fiscal year and that $4.444 billion is the expected inflow of foreign aid for fiscal year 2011.

The Federal Board of Revenue (FBR) also informed the prime minister that corruption in the FBR has decreased according to the Transparency International. The FBR said that the integration of inland revenue system is now a law and that the FBR is ready for the implementation of the reformed general sales tax system.

The FBR added that its challenge is to increase the tax to Gross Domestic Product ratio to 15 per cent in the medium term.

The prime minister then instructed the FBR chairman to prepare a detailed briefing regarding the decrease of corruption in the FBR to inform both the prime minister and the general public through the media about this development.

Gilani also said that the focus should be on the completion of current and not new projects because financial resources are limited. He further directed the Planning Commission to prepare and submit a report regarding all development projects that are nearing completion during this fiscal year.

Published in The Express Tribune, November 20^th, 2010.