Islamabad: The government is determined to enhance debt repayment capacity through resource mobilization efforts and increase in tax to GDP
According of officials of finance ministry efforts are underway to raise tax to GDP ratio from the current level of eleven percent to around thirteen percent by 2017-18.
Steps are also being taken to replace the expensive domestic debt with concessional external loans. Continuous monitoring of expenditures on monthly basis is also being ensured.
Privatization of various public sector enterprises is under process, and ninety percent proceeds of privatization will be used for debt retirement.
Owing to these efforts, fiscal deficit is estimated to be lowered to four percent of GDP in 2016-17 as against 5.37 percent recorded in 2014-15.