Karachi (June-22-2024) : Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain said on Saturday that some conditions of the IMF have yet to be fulfilled in the recent budget.
He said that in contrast, most of the budget proposals are as per the instructions of the IMF.
He said that honouring commitments with the IMF will help Pakistan secure new loans to keep the country afloat.
Mian Zahid Hussain said allocating 1400 billion rupees for developmental projects in these difficult circumstances is a miracle.
Talking to the business community, the veteran business leader said that electricity could be made cheaper by Rs10 per unit for the industrial sector by a 200 billion rupees cut in development projects.
The affordable electricity will increase exports by five billion dollars, increase employment, and provide relief to people, but it seems difficult.
The business leader said that last year, 950 billion rupees were earmarked for development projects, of which only 379 billion rupees could be spent till May.
The budget is too focused on indirect taxes, which will increase poverty while reducing government expenditure, which should be addressed.
There has yet to be a concrete plan to eliminate the losses of 1200 billion rupees per year from the power sector. Besides, the privatization of 80 government institutions, which incur losses of 1200 billion rupees annually, must be done immediately.
In both terms, 2400 billion rupees can be saved annually, which makes it possible to save seven and a half billion dollars in government expenses.
He said that in the total budget of 18 thousand billion rupees, a deficit of 9 thousand billion rupees has been shown, which is half of the total budget. This deficit will be covered by taking more loans from various sources.
Nine thousand billion rupees interest will have to be paid on government loans this year and 10 thousand billion rupees next year. To avoid this situation, there is no alternative but privatization and an increased tax base.
Mian Zahid Hussain said that the industries of former Fata, Pata and other parts of the country are being given incentives of more than 200 billion rupees. At the same time, there are several incentives, that violate the promises made to the IMF.
In these circumstances, if there is no increase in exports, remittances and tax base, new mini-budgets will have to be brought, increasing the pressure on the people.
Mian Zahid Hussain said that big infrastructure projects can bring improvement for the economy and the people, so these projects should be completed immediately so that the country’s economic condition can improve.
He said that despite the huge increase in inflation, it is excessive to increase the tax on the income of the salaried class and that increasing the price of medicines, medical equipment, poultry feed, tractors, mobile phones, stationery, newsprint, cement, pasteurized milk and other items will increase inflation.
He warned that increased powers given to FBR are tax fraud cases and 0-year sentence risks being misused to discourage investment.
