MQM presents economic reforms agenda

Party puts forth a 9-point plan to solve the fiscal crisis.

ISLAMABAD:

The Muttahida Qaumi Movement (MQM) presented a series of proposals on Wednesday to address the economic and fiscal crisis facing the country.

The move comes on the heels of the Pakistan Muslim League-Nawaz (PML-N) presenting its own agenda to address the perceived growing crisis of governance in the country. MQM deputy convenor and member of the National Assembly Farooq Sattar outlined the proposals at a press conference in Islamabad. The focus of the MQM’s agenda was on tax reform, though other policies were also put forward.

The proposals call for, among other things, the imposition of an agricultural income tax, the abolition of support prices for wheat and other commodities, reform of agricultural landholdings, an end to the Afghan transit trade, recovery of loans written off under political pressure, reforming the Federal Board of Revenue and government action against the cartelisation of the sugar industry.

“The time has come to tax the rich and the landlords,” said Sattar.

He went on to claim that the party’s proposals would be sufficient to close the government’s fiscal gap, which is expected to exceed Rs1.1 trillion billion for the fiscal year ending June 30, 2011. For instance, he claimed that eliminating corruption at the FBR would bring in Rs400 billion in government revenue and that imposing a tax on agricultural income, currently exempt, would yield another Rs200 billion. All told, Sattar claimed that the party’s proposals would bring in Rs1.2 trillion in revenue for the federal government.

Published in The Express Tribune, February 3rd, 2011.