Iftikhar Khan, the advisor to the President of FPCCI, said on Sunday that the highest population growth and the lowest GDP growth are the perfect recipe for disaster. He noted uncontrolled population growth amid low GDP growth is a serious challenge. Speaking to the business community, he stated that Pakistan’s population is growing fastest in the region and will double by 2050.
According to the census statistics, Iftikhar Khan said that with 241.49 million inhabitants, Pakistan is currently the sixth most populated nation in the world. Of these, 48.51 percent are women, and 51.48 percent are men. He warned that if the country’s population continues at its current rate of 2.55 percent, the highest in the region, it will double by 2050, which will be very difficult to manage.
Iftikhar Khan said that in Pakistan, 36.47 million individuals are under five years old, 97.53 million are under fifteen, 62.58 million are between the ages of fifteen and twenty-nine, and 190.27 million are under forty. According to literacy indices, 61% of Pakistanis ten or older are literate, but Bangladesh and India have achieved better results than Pakistan in several areas, including education.
According to the business leader, Pakistanis are on par with everyone regarding intelligence and ability. Still, we must broaden our horizons to be considered in the global competition. He underlined the necessity of maintaining political stability and peace and the significance of preserving policy consistency for a minimum of ten years.
He warned that we’ll become irrelevant without keeping up with the world. Commenting on the budget, he stated that the recent budget controversy stems from its failure to relieve the middle class. Instead, it increased the effective income tax rate of salaried individuals to 39 per cent, associations to 44 per cent, and non-salaried individuals to 50 per cent from last year.
At a time when this particular section of society has lost nearly half of its purchasing power in the last five years, the already stressed salaried class is facing an increase in taxes, which is difficult for the masses to accept.
Instead of bringing some respite for the have-nots from the undue inflation for which they are the least responsible, the budget has once again added to their agony by imposing additional levies on electricity, petrol, diesel, grocery items, property, etc. The major reason behind the tax surge is to secure a new deal with the International Monetary Fund, which would keep the national economy afloat. The disastrous budget reveals the fault lines in the current power system, as the government consistently refuses to end the exemptions it grants to the bureaucracy.
Similarly, the government excludes the retail and agriculture sectors from tax imposition, which wield significant political sway. The IMF’s insistence removed some exemptions, but the list of protections remains endless. Flawed policies are holding back the economy. He said we need a change that benefits the people, not just the privileged.
Iftikhar Khan said it is irrational to grind impoverished families under the weight of new taxes to secure an IMF package. The government should also bring the rich and powerful into the tax net to alleviate the burden on the poor. Moreover, the government should reflect on past events and draw lessons from them to understand why every government must seek assistance from the IMF each year to stabilise the struggling economy.
Despite claims that the budget is public-friendly and an attempt to minimise hardships, it has severely impacted people experiencing poverty and businesses.
The consequences of this skewed system are far-reaching. These unjust taxes further strain the already tight budgets of middle-class families. The government diverts funds for groceries, rent, or education, pushing many middle-class families closer to financial ruin. He said this stifles economic growth as these families have less disposable income to spend.
