ISLAMABAD: Finance Minister Ishaq Dar hinted on Saturday that revenue collection may witness a shortfall in the range of Rs150 billion to Rs175bn for the current fiscal year.

The minister disclosed this in the second meeting of the Economic Advisory Council (EAC), a well-placed source privy to the meeting told Dawn.

FBR’s revenue collection target of Rs2,475 billion is not realistic, Dar said.

The shortfall in revenue collection will be adjusted against proposed allocations for certain projects, said a source, adding that the finance ministry has already conveyed to the International Monetary Fund (IMF) that revenue collection target will be reduced to Rs2,345bn as against the budgetary projection of Rs2,475bn.

The finance ministry estimates show that revenue collection would hardly touch the figure of Rs2,300bn by the end of June 2014.

The impact of the revenue shortfalls will be adjusted against possible cuts in the development budget.

A tax official informed the EAC participants regarding rationalisation of its taxation-based concessionary regime.

The official admitted that it would not be possible to completely phase out SRO regime because it involves some genuine users, like charity organisations.

In the first seven months, the FBR has already witnessed more than Rs69bn shortfall in revenue collection.

Presentation on oil and gas reserves in Pakistan was given to the participants, which evoked stimulating discussion.

However, presentation on food security was deferred to the next meeting along with constitution of working groups on different subjects.

Dar informed the meeting that 10pc increase in overseas remittances has been registered up to the current month.

He further said the government intends to positively enhance reserves up to $16bn by the end of December 2014.

The meeting participants were further briefed that multilateral donors visiting Pakistan are keen to invest and contribute to strengthening of Pakistan’s economy through various negotiated financial instruments.

By the end of March 2014, a sizeable increase in forex reserves is anticipated with a projected figure of more than $10bn since forex inflows are adding up steadily.

The finance minister briefed the members of EAC regarding Pakistan’s economic indicators which have been positively registered by IMF in terms of upward surge in development sectors.

Stability in the forex market is another factor, besides petroleum products prices in international market getting favourably settled, he said, adding that overall financial forecast/projection speaks of food and POL prices registering stability to the benefit of country’s economy.

The 30pc austerity measures adopted by the present government are likely to generate enough financial cushion to meet its fiscal deficit target, said the minister.

The EAC members also suggested that ministry of finance should upgrade Debt Management Office to streamline the national debt-related issues through an exhaustive consolidation of financial figures/tabulation.

The Debt Limitation Act 2005 should also be implemented to streamline all debt-related financial instruments, EAC members stressed.