Pakistan’s former finance minister Dr Hafeez Pasha has said that under an ongoing deal with the International Monetary Fund (IMF), the government will impose taxes worth Rs900 billion in the upcoming budget, The Express Tribune reported.
“The government has assured the IMF that it will impose Rs700 billion in additional taxes in the first year, Rs900 billion in the second year and Rs1,200 billion in the third year. We don’t have an option but to renegotiate with the IMF since our team was not able to prepare things properly,” Pasha said.
“It is high time to bring radical tax reforms through tough decisions in the upcoming budget and those who can bear taxes should now take the burden since Pakistan has to pay Rs2 trillion in debt servicing this year; this amount will further increase to Rs3 trillion next year,”
Economist Dr Qais Aslam said that Pakistan could not enter the 21st century “while having a mindset and policies of the 19th century”. “We have to uplift our institutions with a clear message to our bureaucracy that things will no longer materialise with their mindset.”
He pointed out that the small-scale industry accounted for only 1% of Pakistan’s economy whereas in the modern world it was considered the backbone of any country. “We have to fix these issues, or else it will be impossible to give employment to the people.”
“The country has lost one million jobs in the past one year and during the same period about two million youngsters have qualified for jobs… we have to create employment opportunities for them,” he said.
