The Asian Development Bank (ADB) has raised doubts over Pakistan’s ability to achieve the budget deficit and economic growth targets in the current fiscal year, outlining the challenges the country faces due to lack of progress on structural reforms.In its flagship publication, “the Asian Development Outlook (ADO) 2015”, the Manila-based lending agency painted a mixed picture of Pakistan’s economy but was not sure whether it would be able to deliver on key economic indicators.In fiscal year 2015-16, the government is striving to take the budget deficit down to 4.3% of gross domestic product (GDP) or Rs1.319 trillion.“Notable risks to the budget estimates include failure to achieve a significantly higher provincial fiscal surplus and the Federal Board of Revenue (FBR) collecting less tax than projected,” said the report. The bank’s concerns were not misplaced as the FBR faced a huge shortfall in tax revenues in the first two months (July and August), which has made it almost impossible to touch the annual target of Rs3.104 trillion. The lower-than-expected tax revenues have a direct bearing on provincial cash surpluses. Under the National Finance Commission award, provinces get 57.5% of total federal tax collections. Time and again, international lenders have called for reforms to Pakistan’s tax machinery. Burdened with debt and driven to the doors of donors and lenders amid rising defence spending, Pakistan has not looked towards its own public to raise revenue. Instead, it keeps looking for the easy way out, repeatedly asking global lenders for help. Falling tax collection has not only forced the government to increase indirect taxation, but has also led to the country missing growth and budget deficit targets. If the performance of the first two months of the current fiscal year is any judge, collecting an ambitious Rs3.104 trillion seems like a tall order. Refunding claims will only make things worse for the Federal Board of Revenue.Another crucial point the ADB raised — that mostly gets ignored in this part of the world — was gender disparity in the workplace. In a special themed chapter, the ADB has noted that while Asia’s economic boom may have helped women in many ways, their labour force participation has gone down in the last 23 years. It also highlighted the hypocrisy where countries want increased female participation in the workforce, but little is done to remove obstacles for women, such as hindrances to reach senior positions and the pay-gap. Pakistan is not exactly known for promoting women in the workplace.
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