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Strict measures

Sunday, May 29, 2022

Pakistan faces the worst economic crisis of its history. The dollar has crossed the Rs200 mark. In order to overcome this crisis, Pakistan approached the IMF for a bailout package. The financial institution asked the government to reverse the subsidies on petroleum products. The government has now raised petroleum prices. This move will cause more inflation.

The main reasons for the current economic crisis are budget and trade deficits, high indirect taxes, and low tax rates for the rich. The country will not come out of this mess until the government takes tough measures. It must widen the tax net and increase the rate of wealth and income taxes. Proper steps should be taken to increase exports and attract foreign investors. There is an immediate need to introduce reforms in the agriculture sector and strengthen the FBR.

Ali Raza Shah Gillani

Islamabad