Friday, July 1, 2022

Govt to privatize departments causing Rs325 billion loss annually by December: sources

Govt to privatize departments causing Rs325 billion loss annually by December: sources
June 21, 2022 Web Desk

ISLAMABAD (92 News) - The government has decided to privatize the departments causing a loss of Rs325 billion to the national exchequer by December.

Sources in the Finance Ministry disclosed that the government had also decided a strategy to reduce the expenditures and increase the revenue. They said that 32 percent increase in revenue will be achieved due to a raise in the value of dollar and inflation.

On the other hand, the State Bank of Pakistan has allocated a fund of US$500 million for the commercial banks. This step is the first sign of inking a new agreement with the IMF.

The government will have to reduce the budget deficit and increase the payment of loan.

The government will have to increase the revenue in the way the FBR need not raise the sales tax rate. An amount of Rs300 billion will be generated by selling or partnership of the state-owned companies. In this way, the FBR will collect the revenue of Rs780 billion.

The sources added that there will be no need to impose the sales tax on the sale of petroleum at least for three months.