(March 21-2023) The Pakistan Economy Watch (PEW) on Tuesday said interests of different influential business groups are being promoted putting national interests and interests of the masses on the backburner which is bleeding the economy.
economy suffers if the interests of shopkeepers become more important for policymakers than the interests of the country.
When the priority is to reward the wholesellers, retailers and property sector and the broker mafia, investment in the industrial sector dwindles hitting production, exports, jobs, and revenue, it said.
When the private power plants are the apple of the eye of policymakers, it is no wonder that the circular debt exceeds four thousand billion rupees, said Dr. Murtaza Mughal, President of PEW.
He said that the share of wholesale and retail businesses in the GDP is about 20 percent, but they are neither taxed nor the markets are closed in the evening because they are supporters of a political party.
If this sector is taxed then billions of dollars can be saved and if their prices are controlled then the entire population of the country can get relief but this will never happen, he added.
Dr. Murtaza Mughal said that agriculture is a major sector of the economy but the agricultural income is not being taxed properly.
He added that apart from the shopkeepers, the real estate mafia is also given special favors. This sector has been given free rein to loot the public and has been made so profitable that no one is willing to invest in the productive sector.
Due to unbelievable profits in the real-estate sector, industrialists are closing down factories and investing in this sector.
Dr. Mughal said that private power plants are another blue-eyed sector that is being promoted at the cost of the country.
Instead of expanding the tax net. Indirect taxation has been increased while the existing taxpayers are being squeezed which is not sustainable.
He informed that the six-month economic deficit is Rs1.683 trillion and the current account deficit is up to 3.66 billion dollars.
The deficit will exceed nine billion dollars after the containers are released from the port.
He said that most of Pakistan’s exports are dependent on the textile sector and the floods have proved that this sector is not immune to the effects of weather.
Apart from this favorite sector, IT and other sectors also need some attention. If the policies are not subordinated to the interest of the people, then the country will have no future, he warned.
