Economy facing major problem of resource mobilisation

ISLAMABAD (APP) - Advisor to Prime Minister on Finance Shaukat Tarin said on Friday that economy was facing a major problem of resource mobilization. If we want to be successful state, we to generate more resource to strengthen our economy, the said while talking to private TV channel. He said our tax to GDP ration is only 10 percent which was very low as compared other developing countries. Shaukat Tarin said stabilization of economy ranked first in nine point economic agenda of the government, adding the ministry was making efforts to take revenue to 15 to 17 percent in next five to seven years. He said policy decision like expanding tax net and introducing administrative reforms were must to strengthening economy and creating employment opportunity in the country. He said capital gain on real estate had been introduced along with tax on services sectors, adding tax capital gain and agriculture would be introduced in next two years. Shaukat Tarin said PPP government assumed power when economy was under pressure as past governments delayed taking some major decisions. Replying to a question, he said during last 18 months, the government borrowed 1.3 trillion rupees from the State Bank to finance fiscal deficit. He said the government was focusing on strengthening real economy with top priority being given to agriculture and manufacturing sectors. New NFC Award to be finalised in three months Advisor to Prime Minister on Finance Shoukat Tarin said on Friday that new NFC Awards would be finalised in three months, adding it was imperative to increase divisible pool of provinces. Talking to private TV channel, he said, As we have committed, NFC will be introduced in next three months. It is much better to give resource to province as it is ultimately spent there. He said that basis of NFC should be on population, backwardness, resources mobilisation and land. Consensus has been evolved on three basis but NWFP and Punjab has reservation on resource mobilisation.

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