The proposed withdrawal of tax exemptions on over 150 items and imposition of 17 percent general sales tax across the board in the mini budget can trigger an inflationary storm. The warning has been issued by Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari, who believes that the country would witness high inflation, poverty and unemployment if the government passed a supplementary finance bill and imposed new taxes of Rs343 billion to meet the International Monetary Fund’s conditions to revive a $6 billion bailout package. On the other hand, the rulers blame a surge in international oil and edibles prices as the main reason for soaring inflation in the country. It also laments poor performance of the country in the export sector.
Arguably, the situation is going from bad to worse in almost all sectors. Inflation rate is going up due to persistent devaluation of rupee while our economy is under severe pressure of loans. The government is still searching for ways and means to resolve the financial crisis that it had inherited due to massive loans taken by the previous government. It seems that the PTI leadership’s lack of experience in running the government affairs is making it vulnerable to take U-turns and break its earlier promises. Facts strengthen this argument that it was the PTI chief who had claimed that he would commit suicide, if he had to take loans from the IMF. Second, he had announced ambitious plans to build millions of houses and create jobs for the unemployed. Apparently, the PTI chief has failed to come up to his words after coming into power. His government is still struggling to revive economy.
Unfortunately, the government is still busy giving the lollipop of promises and taking pride in its unaccomplished tasks. The masses are losing confidence on the PTI government due to its inability to bring economic reforms. Wisdom demands that the PTI leadership should carry out serious introspection about its economic policies for the fulfillment of Naya (new) Pakistan dream; otherwise it would face the masses’ wrath in the next general elections.
