Friday June 21, 2024

Roadmap issued to tackle challenges, achieve sustained growth

March 27, 2023

Islamabad: The Policy Research Institute of Market Economy (PRIME), a prominent think tank, on Sunday has released a 47-point Charter of Economy with the goal of addressing challenges facing the nation’s economy, promoting sustainable growth, and providing a roadmap for restoring stability amidst ongoing economic challenges.

PRIME’s charter of economy outlines a comprehensive plan aimed at tackling the issues at hand. The charter of the economy is set to become a vital tool in the ongoing efforts to navigate the economic challenges facing the country.

The charter of economy has been developed in response to the current economic situation, which has been marked by rising inflation, high unemployment, and declining growth rates. The charter of economy lays out a series of recommendations that aim to promote economic growth, reduce inflation, and create jobs.

One of the key recommendations is the need for fiscal discipline, with a focus on reducing government spending and increasing revenue through tax reforms. The proposed charter includes fair taxation, centralizing zakat collection, establishing a National Tax Agency, and abolishing monopolies.

The government should appoint secretaries based on professional expertise, establish a Fiscal Responsibility Commission and a Public Debt Commission. The charter urges the government to stop providing free petrol, electricity and subsidized plots to public officials.

It also calls for the introduction of pension reforms and the withdrawal of exemptions from taxes. Additionally, the charter proposes bringing agriculture income under the federal government and implementing a uniform tax rate on private as well as state bodies.

The withdrawal of indirect taxation on utilities is also recommended. One of the key provisions of the proposed charter is the requirement for a two-thirds majority in parliament to approve any mini-budget.

Additionally, the charter calls for no government intervention in setting commodity prices and for the abolishment of the Pakistan Agricultural Storage and Services Corporation (PASSCO). PRIME also proposed to remove controls on import and export, except in cases of national emergency, and only with the approval of a two-thirds majority in the Parliament.

The charter further states that the government should not utilize more than 25 percent of commercial credit available in a fiscal year. The new charter calls for the privatization of all government-owned enterprises within a five-year time frame. The proposed charter also includes provisions for leasing out unproductive state land for industrial, business, and commercial ventures.