From the Finance Division

This refers to the article, ‘A fundamentally flawed fiscal policy’ (January 6) by Dr Muhammad Yaqub. The writer has highlighted various issues that have historically pulled back growth and adversely affected the standard of living in our country. The writer, however, has ignored the efforts the present government has been putting in the process of budget-making and allocation of resources. Soon after assuming charge, the government laid out a comprehensive agenda of reforms to reinvigorate the economy. The key element for the purpose of allocation of funds is the budget-making process. The government took the point of view of the stakeholders which was widely appreciated by the relevant quarters. Regarding the expenditure side, ministries as well as the planning division are consulted for allocation of funds. This process is being adhered to as per standard guidelines which the writer fully understands.
For the sake of transparency, the government’s revenue and expenditure record is available on the finance ministry’s website. We have also stated time and again that we are open to any suggestions for further improvements. Under a comprehensive resource mobilisation policy we have adopted a three-pronged tax system improvement formula – broadening of tax base, removing anomalies in the taxation system to improve tax compliance and elimination of the SROs regime. The mega infrastructure projects undertaken by the current government will accelerate growth and if the energy projects had been initiated earlier, the country would have been saved from the crisis and resource crunch we are feeling today.
Government of Pakistan
Finance Division
Islamabad