ISLAMABAD The government has approved a plan to bring down inflation to less than 10 per cent by the year 2010-11, scale down fiscal and current account deficits and mobilize internal resources.

`We are working for stabilization of macro-economic indicators and all our initiatives are likely to be in place by end January 2009`, Adviser to Prime Minister on Finance and Economic Affairs Shaukat Tarin said while addressing development partners at a consultative workshop on Wednesday.

The workshop was held for sharing draft poverty reduction strategy paper-II. It was attended among others by representatives from the World Bank, ADB, IMF, DEFID, and IDD.

It has been projected in the report that GDP growth rate will be 4.4 per cent in the year 2008-09, 5 per cent in 2009-10 and 5.5 per cent in 2010-11. The inflation for the current fiscal year has been projected at 22 per cent, 13 per cent in 2009-10 and 9.5 per cent in 2010-11, respectively.

The policy document presented in the meeting also projected that the tax to GDP ratio to be raised from less than 10 per cent to 15 per cent by end of 2012-13. This will be achieved through a combination of elimination of exemptions, strengthening of federal tax administration and improved enforcement.

It could also be followed by removal of distortions in several taxes and exhorting provincial governments to fully exploit the potential of property taxes.

Mr Tarin said the government is putting in place a twenty years development rolling plan with prefixed goals, which also contains six quarters rolling forecast in terms of best possible economic planning and development.

The planning commission has been geared up for this objective, he said and added a policy board was being formed to implement the decisions.