KARACHI:
In 1958, Pakistan negotiated the first IMF deal. Since then, the country has negotiated many deals and is currently drowned in foreign debts piled over the years. Our present economic crisis threatens state sovereignty and security and demands drastic change and austerity with long-term solutions. Over the years, successive governments have indulged in reckless economic policies, which have increased debts. They did not invest in the development of human resources and instead gave subsidies to the elite whilst millions continued to live in poverty.
Given the enormity of the crisis, it was expected that state machinery would tighten their belts and take concrete steps to levy direct taxes on the rich by the internal revenue department i.e. the Federal Bureau of Revenue (FBR) taking a lead, with clear-cut policies by the economic czars at the helm. Even international financial institutions like IMF and others, which are generally viewed as serving their global masters and agendas have cried foul and advised Pakistan to tax the rich and offer targeted subsidies to the poor.
The reckless abuse of the country’s scarce financial resources has driven the country towards default. This should have jolted the federal government and compelled them to change. Instead, the FBR, which is tasked to collect and increase revenues, was given the task of importing 155 luxury vehicles at an enormous cost of over Rs1.6 billion. It was only after the media exposed this waste did the Prime Minister intervene. The government should act strictly against all those officials responsible for approving this request during such a grave economic situation. The government should impose direct taxes on all sources of income and withdraw all subsidies, otherwise, Pakistan’s sovereignty and security will be compromised.
Malik Tariq
Lahore
Published in The Express Tribune, February 24th, 2023.
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