Roundtable calls for fiscal overhaul, consensus on economic agenda before polls

ISLAMABAD: The advisory committee comprising mainstream political parties has recommended realigning the National Finance Commission (NFC) with provincial capabilities to boost revenue mobilisation. The parties advocate for initiating new IMF programmes, improving governance and fostering a minimum broader consensus on the economic agenda for the upcoming general elections.

Former finance minister Dr Hafiz A Pasha has proposed imposing an additional Rs2,000 billion in taxes for the incoming government. This includes collecting Rs540 billion from the property sector, implementing an Agriculture Income Tax of up to Rs270 billion, imposing a 10 percent inheritance tax and introducing income tax on retailers and green tax among other measures. During a roundtable session “Prosperity for Pakistan: Policy Agenda for Incoming Government,” jointly organised by UNDP and SDPI, Dr Hafiz Pasha stressed the need to update the valuation of rental property, impose a 10 percent inheritance tax and bring agriculture and retailers fully into the tax net to generate an additional Rs2,000 billion annually.

UNDP’s Resident Representative Dr. Samuel Rizk said the roundtable aimed to facilitate dialogue ahead of the elections, providing an environment for political parties to discuss an agenda for prosperity with equitable growth. He highlighted Pakistan’s lagging progress on Sustainable Development Goals (SDGs) indicators and emphasised the importance of catching up before the 2030 deadline.

Senator Musadiq Malik of PMLN stressed that the economy is a multifaceted issue and advocated for addressing unemployment and poverty. He criticised the TERF scheme for favoring industrialists over Small and Medium Enterprises (SMEs).

Former minister of state for finance Dr Aisha Ghaus Pasha claimed that their 16-month rule had saved Pakistan from default. She acknowledged the challenges faced, including a rise in unemployment and inflation, and suggested that Pakistan would need another IMF programme for structural reforms.

Senator Saleem Mandviwalla, Chairman of the Senate Standing Committee on Finance, identified governance as the real challenge for the country’s economy. He criticised lack of implementation of reports by Dr. Ishrat Hussain and highlighted the delayed implementation of EXIM Bank idea.

Mian Iftikhar Hussain of the ANP highlighted issues in Khyber Pakhtunkhwa, including terrorism and an underdeveloped irrigation system affecting the agriculture sector. He emphasised the potential of the agriculture sector if water availability is properly channeled.

Senator Taj Haider from the PPP called for increasing production while reducing the cost of production. He expressed skepticism about privatisation in Pakistan and suggested that public-private partnerships could offer solutions. Shaza Fatime Khawaja of the PMLN stressed the need for ease of doing business, policy consistency and a broader consensus on the charter of the economy.