ISLAMABAD, Oct 28: The government is examining whether an expected Rs70 billion full-year revenue loss owing to freeze in domestic oil prices could be neutralized through adjustment in the overall tax revenue collection.

This was stated by Dr Salman Shah, adviser to the Prime Minister on Finance while talking to reporters here on Thursday.

When asked as to what the government had in mind to tackle the oil price issue, and whether it planned to pass on the impact of world prices after Eid, he said: "You suggest what we should do".

He said the government had so far absorbed a loss of about Rs20 billion on account of zero petroleum development levy (PDL), a loss that was increasing every day. He, however, said he was not sure whether the Rs20 billion also included the figures of May-June 2004.

The ultimate objective of the government is to ensure that fiscal deficit at the end of the year is within the target, Mr Shah said.

He said the tax collection was growing which should help absorb the oil impact and ensure that fiscal deficit remained under control.

Responding to a question on the National Finance Commission (NFC), he said the NFC meeting would be convened by Prime Minister Shaukat Aziz after Eid. He said the prime minister knew better as to what should be done in this regard.

When asked whether the NFC was being reconstituted, he said the prime minister would take necessary steps in this regard after Eid and added that in any case it would be the 7th National Finance Commission.