ISLAMABAD: A mini-budget is feared following the failure of the FBR measures to increase revenue on the behest of IMF, an FPCCI official said Tuesday.
The masses are business community is worried about the future as the FBR move to raise Rs637.4 billion through Finance Act 2019.20 have backfired, said Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal.
He said that tax-to GDP ration has dropped to 9.6 percent which was between 11.4 and 12.6 percent during the past five years which is a major blow to revenue collection administration.
He said that inflation is a positive sign if it is due to demand but inflation in Pakistan is due to repeated hike in power tariff, mafia, and absence of administrative control.
Dr. Murtaza Mughal who is also President of the Pakistan Economy Watch said that the central bank has also failed to contain inflation and it is now preparing for a rate hike which will hit masses, production and exports and add to poverty.