ISLAMABAD: Pakistan on Monday extended the deadline for a tax amnesty scheme in order to encourage residents to declare hidden assets and, in turn, broaden the country’s revenue base.

The deadline for the initiative, which was set to end on June 30, has now been moved to July 3.

In comments to the media on Sunday, Prime Minister Imran Khan’s financial adviser, Dr. Abdul Hafeez Sheikh said that the initiative was to ensure that people had a little more time to take advantage of the scheme.

He said that the government’s tax revenue target was Rs5.55 trillion ($36.80 billion) for the current fiscal year, adding that – as part of the measures to ensure compliance – authorities had lowered the introductory threshold for income tax, in addition to ensuring a clampdown on tax evasion.

The amnesty scheme, introduced in May this year, allows Pakistani citizens, except public office holders and their spouses, to declare hidden assets by paying 4 percent tax on domestic and 6 percent tax on offshore assets.

Recently, PM Khan, who wants to make this scheme a success, urged people to avail the opportunity and avoid being penalized.

Pakistan’s national debt has increased from Rs6,000 billion to Rs30,000 billion in the past decade, with PM Khan and his team terming it as a “debt trap” – one that has compelled the country to keep seeking fresh loans in order to pay the interest for previous ones.

The government, for its part, insists that the economy has been under severe stress because half of the country’s income has been used to repay debts and interests on foreign loans.

In May this year, Pakistan reached an accord with the International Monetary Fund for a three-year, $6 billion bailout package aimed at shoring up fragile public finances and strengthening a slowing economy.