ISLAMABAD: Ashfaq Tola, who chairs the Reforms & Resource Mobilisation Commission, said on Wednesday that the salaries of government employees would be raised by around 20 per cent in the coming budget.

“Salaries of lower grade employees is very low and the scales need a major boost,” Mr Tola observed.

He parried a question over the perks and privileges enjoyed by bureaucrats.

Ashfaq Tola was addressing a ceremony to launch a report, “Unveiling tax evasion: a closer look at five sectors in Pakistan.”

The report has been prepared by Ipsos, a Paris-based research organisation. It reveals that tax evasion in five sectors causes a loss of Rs956 billion annually.

The report said the estimated tax evasion in the real estate sector was Rs500bn annually, in tobacco sector Rs240bn, Rs 106bn in tyres and auto lubricants, Rs 65bn in the pharma sector. In addition, the country loses Rs45bn to illegal tea trade.

Mr Tola said tax evasion was a menace as it had created a parallel economy.

“Apart from lobbying by interest groups, one part of the problem is lack of coordination among different government departments.

“The solution lies in automation and financial inclusion as it is important for economic growth,” he said.

Mr Tola criticised the existing implementation of the 18th amendment, saying that while 58.5 per cent of national resources were being transferred to the provinces, they were not held accountable for their performance.

For checking smuggling, he said scanners should be installed to check containers returning after delivering transit trade goods in Kabul.

Published in Dawn, June 8th, 2023