Chairman of National Business Group Pakistan, President of Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, Mian Zahid Hussain, and former provincial minister, said on Monday that some of the budgetary measures proposed by the IMF are not implementable.
He said the upcoming budget should not be unbearable for the people because the masses and the business community cannot bear more burdens.
Talking to the business community, the veteran business leader said that electricity consumption increases in summer, and the steep increase in electricity prices is condemnable.
Mian Zahid Hussain said that removing subsidies in various sectors and commodities, privatization of sick government industries, and continuous increases in electricity and gas prices will give the government temporary relief.
The solution to the problems does not lie in breaking the back of the people but in full recovery from the taxpayers and non-taxpayers, which amounts to four thousand billion rupees annually, towards which no significant progress is being made.
Also, until the power sector issues are resolved, the dependence on debt will continue to rise. Therefore, instead of increasing the burden on the people, the tax base should be widened, tax collection should be improved, and the affairs of the power sector should be streamlined.
Mian Zahid Hussain said that the IMF is demanding that taxes be increased on flour, sugar, rice, milk, tea, and other important food items, which will promote the documentation of the country’s economy.
On the other hand, it will increase inflation and mass anxiety, so attention should be paid to improving the purchasing power of the people.
Taxes on pesticides will affect the agricultural sector and increase inflation, so this should also be considered.
Mian Zahid Hussain said that the government’s dependence on loans from local banks has increased to an alarming level due to the sharp decline in tax collection and foreign investment.
85 percent of the total interest that the government pays on loans is spent on local loans, and this year, about nine thousand billion rupees will be required to pay the interest.
The deficit will increase beyond the budget targets if the banks do not come forward to resolve the financial problems.
Mian Zahid Hussain said that in 2008, due to the budget deficit, the government used to meet 24% of its capital requirement by borrowing from banks, which has now increased to 83%, which can become a big risk for the country’s financial system.
The current situation can be tackled through drastic economic reforms, privatization, import substitution, and an increased tax base. In this regard, the whole nation must unite with the government.
