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SAFA CONFERENCE 2016 SOUTH ASIA: CORRIDOR OF OPPORTUNITIES SAFA Conference 2016 www.icap.org.pk Asia was the fastest growing region amongst developing countries. He also said that despite some consolidation efforts, South Asia's debt to GDP ratio was the highest among developing regions. South Asia's fiscal deficit is decreasing gradually but remains high relative to most other regions. Governments in the region are the passage of the bill, whoever holds ''Benami Account'' collecting very little revenue, which affects the available will have to pay 35 percent tax plus 100 percent penalty. fiscal space for priority spending. While talking about The purpose of tabling the bill, he said, was to discourage the Pakistan, Enrique said revenues in Pakistan were circulation of black money in the country. increasing but not as fast as expected. Public debt was gradually declining, but composition was improving. Haroon claimed that 20 percent more revenue was Rigidity in recurrent spending for Pakistan has made collected than the actual target fixed during the first six fiscal consolidation challenging. He said like the rest of months of the fiscal year. He said that actual revenue target was Rs. 750 billion but the government had collected Rs. 785 billion. He said Pakistan's tax to GDP ratio was 12 percent, adding India's tax to GDP ratio was 17 percent where six percent share was made by the provinces. He also said that our provinces contribute only 0.8 percent in tax to GDP ratio. He appreciated the role of all the provinces in increasing the tax net and said that we are trying that our provinces will share six percent in tax to GDP ratio. Haroon also said that the government was evolving a system in three to four months to streamline the problems faced by Pakistan and China trade which included the problem of under invoicing. After the induction of this system the export data provided by China would be considered as the import data of Pakistan. According to the figures of Pakistan Business Council which were not verified so far, China's exports to Pakistan was $13 billion but Pakistan's figures showed that China's export to Pakistan was $9 billion. He said that there was a gap of four billion dollars between the figures. While defending the Tax Volunteer Scheme recently announced by the government, Haroon said that the objective of the scheme was to broaden the tax next, adding that two million people would be in the tax net after four years under the scheme. The Conference also included a panel discussion on Role of Accounting Profession - Bringing South Asia South Asia, Pakistan lacked fiscal or external buffers to Together. Heads of the SAFA Institutes participated in be utilised in the event of a shock, adding low revenue the session. The panel discussion, conducted by Fakir levels resulted in limited space for priority spending. Syed Aijazuddin, former principal Aitchison College, He also said that Pakistan spent less than three percent proved to be an exciting blend of professionals of GDP in health and education together, significantly compelling the audience to participate in the discussion. lower than most other countries (~5% on education, The third technical session on Prosperity for South Asia 3-4% on health). The session’s concluding remarks were made by Haroon Akhtar Khan, special assistance to PM for Revenue. He said that the government was going to table a bill in the National Assembly soon to curb ''Benami Accounts.'' After 4 5