The IMF debate

This refers to the news report ‘Analyse pros, cons before approaching IMF, Imran tells EAC’ (February 5). It is satisfying to know that now the finance minister has a different view on the IMF programme and is not inclined towards getting a bailout package – probably after analysing the results of the Fund’s recipe in Egypt, Argentina and other countries. Unfortunately, the finance minister has been reluctant to carry out structural reforms in the economy. Despite promises, no real effort has been made to widen the tax base as a result of which the tax burden continues to fall on existing taxpayers. The mobile tax should be immediately restored after seeking permission from the apex court. Surprisingly, the tax on cigarettes and sugary drinks – the infamous sin tax – has not been imposed.The finance minister must introduce robust measures to boost the economy which requires investment and fast industrialisation. There is a need to reinstate institutions like the PIDC and the IDBP (Industrial Development Bank of Pakistan) to facilitate the creation of manufacturing plants. Only the government’s lead role can restore investors’ confidence and create a business-friendly environment in the country, which was vitiated by the nationalisation policy of the 1970s.Arif MajeedKarachi

from The News International - Newspost http://bit.ly/2tblLlo