Trade deficit in Pakistan is becoming a huge economic problem for the country. Haroon Akhtar Khan who is a Special Assistant to Prime Minister on Finance, addressed this issue in a seminar conducted by Ministry of Commerce. He said that Federal Board of Revenue is viewing options and forming a plan to reestablish the export sector of the nation.
He further said that paying taxes is an obligation on all citizens. If they won’t then the situation would get difficult for them. The revenue target for the upcoming year decided is Rs4 trillion. Also Mr Khan said that they will bring up the issue of refund in the next budget. The budget proposal was discussed by Commerce Secretary Younus Dagha. The proposal focused on reducing prices and refunding sales and customs tax. The awaiting refunds that account for Rs150-200 billion should be released as per the proposal. This is necessary to boost export in Pakistan. These suggestions on upcoming budget would be given to FBR and finance ministry in a few days.
We discussed earlier in an article about trade deficit getting record high in Pakistan. It reached to $26.6 billion in last year which was $7.6 billion more than last period deficit. This new proposal to improve export in Pakistan would be implemented or not that is the first question. The second question is even if it is implemented would it work or not? Time would tell. We can only hope that trade in Pakistan flourish and export from the country increase for everyone’s sake.