Islamabad-Comprehensive economic reform strategy should be on top of the docket of the new coalition government, former finance minister Dr Hafeez A. Pasha said on Saturday.
“ For the first time, we’ve such a broad-based public agreement government. An occasion has presented itself to correct the frugality and rationalize the taxation system,” Dr Pasha said. He was delivering a speech at a symposium meeting on‘ Immediate profitable precedences of Pakistan’ concertedly organized by the Sustainable Development Policy Institute (SDPI) and Friedrich Ebert Stiftung (FES).
Dr. Pasha stressed that the current account deficit of Pakistan in the first eight months of the current financial time had reached$ 12 billion and could touch$ 19bn by June 30, 2022. There would be a need for$ 30bn to$ 32bn of backing every time to manage deals with the rest of the world.
“ Pakistan has been suitable to arrange$ 18bn of backing in the first nine months of the current financial time, whereas$ 15bn to$ 16bn would have to be managed in the remaining three months,” Dr Pasha projected, while adding that about a$5.5 bn decline in the foreign exchange reserves in the month of March 2022, further added to the profitable straits.
He suggested that while entering the accommodations with the IMF, leaders should insure they’re pursuing a comprehensive reform strategy. The relief package should be targeted while all circular levies on introductory food particulars, including ghee, sugar, spices, vegetables, and tea, should be withdrawn.
SDPI Executive Director Dr Abid Qaiyum Suleri stressed that after the Covid-19 epidemic, the Russian-Ukraine extremity had again started a global recession and the issue of food security extremity.
He said, “ The issues that Pakistan is facing, especially pertaining to high affectation, are linked to the global script.” Dr Suleri stressed that political insecurity would remain a trouble to the Pakistani frugality.
Economist Ashfaq Tola, on the occasion, asserted the need for streamlining the taxation system in Pakistan. “ We’ve to correct the shattered system of taxation. The new government should take care of the inequity of levies.”
Dr Aliya Hashmi who’s also an economist, was of the view that Pakistan should look into the issues of the country from a global perspective rather than a domestic bone.
Dr Vaqar Ahmed, Joint Executive Director, SDPI, stressed that indirect debt in both the power and gas sectors, was one of the crucial contributors to the financial seepages.