ISLAMABAD: Federal Minister for Finance, Dr Abdul Hafeez Shaikh said Tuesday that the government has devised a comprehensive mechanism to curb tax theft by identifying potential tax evaders and bringing them into net to improve revenue collection.

He was talking to media persons after inaugurating the 3-day 18th Annual General Meeting and Conference of Pakistan Society of Development Economists (PSDE).

The three day (13-15 November) conference titled, "Economic Reforms for Productivity, Innovation and Growth" has been organized by PSDE in collaboration with Pakistan Instituted of Development Economics with an aim to provide the economists a platform to share their knowledge about economic issues and help find their solutions.

The federal minister said that the government has established a databank that would help it identify, with evidence, the tax evaders on the basis of their consumption of resources and lifestyle.

He said that credible way of implementation would be ensured and now the government would not just suffice on issuing the notices but would go for proper implementation.

He said that it would also seek support within the society by sensitizing the people to take this issue as national issue.

Earlier, speaking at the conference, the federal minister said the tax collection ratio has increased by 21 percent as Rs.350 billion additional revenue has been collected in the Financial year 2011-12, which is a highest tax growth in the history of Pakistan.

The federal minister said, this year the focus would be on expanding income tax base while the government during the past year had specially focused on sales tax and had brought about many changes in the overall system.

Federal Minister for Finance, Dr. Abdul Hafeez Shaikh, while talking about the overall economic challenges said, the country had been successful in achieving high growth rates in the past but could not transform these growth spurts into long term tends.

Even in the times of high growth, the common people were not benefited of this, so it is imperative for economists to think over it.

He said that the businesses of the country also failed to help the country integrate globally by promoting export industry.

The third challenge, he said, has been the growing size of government which continues to grow on and on.

Political instability was another factor that harmed the economy, he said and added that no government in the past had ever been changed

smoothly which not only resulted in politically loss but also caused great damages on economic front.

He said that his was the crucial for economists to find how to ensure inclusive growth.

Talking about the performance of the government, the federal minister said that growth rate is expected to remain at 4 percent during the current fiscal year, which was decreased by 2 percent of GDP due to

floods which caused damage of $10 billion.

He said that the government has completed about 650 projects worth Rs.3000 billion during the past four years.

Shaikh said that the government had laid down strong foundations for the prosperous future of Pakistan and "new Pakistan is taking shape."

Institutions are independent in their domain as the Bank of Pakistan, Securities and Exchange Commission of Pakistan, Competition of Pakistan, Courts and other institutions including media are independent, which is a positive development towards bright future.

He said that democracy is back on track, constitution has been restored, parliament is strengthened, provinces were made autonomous and a good political culture has been created.

The federal minister said provinces have been provided Rs.5000

billion to manage their affairs while additional Rs.1000 billion have been provided after the National Finance Commission award.

The government did not forget the poorest of the poor as three million vulnerable families were provided social safety net under Benazir Income Support Programme (BISP).

The federal minister said that the programme was now being modified

to help the poor stand on their feet.

The minister said, when the current government assumed power, the economic growth momentum was slowed down while the GDP was at 2 percent in 2008 with inflation touching the highest 25 percent.

The country's stock marked was literally closed while there was big burden on current account and fiscal discipline and the foreign exchanges were reduced as low as $5 billion.

The value of rupee was also depreciated from Rs60 to Rs80 against dollar while there was no increase in electricity generation capacity and above all the law and order situation was deteriorated.

It was this situation when the government had to take hard decisions and go to International Monetary Fund for loan under a standby agreement.

Meanwhile, speaking on the occasion, Vice Chancellor PIDE and President PSDE, Dr. Rashid Amjad said that the country needed to grow at 8 percent to accommodate its youth adding the economy needed not only to grow at high rate but inclusive growth was required.

He said that structural changes were required to ensure strong institutions and macroeconomic stability that would ultimately lead the country towards economic development, progress and prosperity.

He lauded the government measures of introducing 18th, 19th and 20th amendment in the constitution and also appreciated opening of

trade with India.

However, he said that the government should have focused on enhancing tax to GDP ratio and improve energy sector.

Among others, Deputy Chairman, Planning Commission of Pakistan, Dr. Nadeem-ul-Haq, Secretary Finance, Wajid Rana and Advisor to Finance Ministry, Rana Asad Amin were also present on the occasion. (APP)