Fix the economy

This refers to the 100-day plan announced by the PTI if it is able to form the government at the centre. While the plan is quite comprehensive and addresses the crucial needs of the people, it has missed two key issues. The critical challenges are the large forex payment obligations due in the next six to 12 months and the management of the current account deficit, which may further exacerbate with the rise in international oil prices. Going back to the IMF, even if possible, is not feasible as it will only add to the burgeoning debt.

Should Pakistan be included in the grey list of FATF next month, all sources of external financing may dry up and punitive sanctions may be imposed on the country. The PTI is also silent on bringing agricultural income under the tax net since taxing rich farmers can bring in billions of rupees in tax revenues. The question is whether the powerful feudal lobby within parliament will allow the imposition of agricultural tax. The multifaceted challenges facing the economy require extraordinary measures to avert a financial collapse.

Arif Majeed

Karachi