Honeymooning with the IMF

This refers to the article, ‘Honeymooning with the IMF’ (April 1) by Dr Muhammad Yaqub. The writer has aptly articulated the risks to our economy and the short-sighted policies of the finance ministry led by Ishaq Dar.
The massive shortfall in revenue is due to high corruption and tax evasion. The rulers are in no mood to plug these loopholes because they themselves are beneficiaries of this culture. Agriculture remains outside the ambit of taxation. The fall in the oil import bill is due to lower international prices. Non-oil imports have recorded considerable increase due to an unbridled inflow of all types of luxury and nonessential items. This has fuelled a large trade gap and created islands of prosperity. The fall in exports is more to do with the unavailability of surplus output than over-valuation of the rupee. The sluggish performance – both in agriculture and manufacturing sectors – has hurt our export. Ishaq Dar’s policies are sacrificing long-term economic stability for short-term gains. The country is surviving on borrowings for consumption purposes and a debt trap is visible in the not too distant future.
Arif Majeed
Karachi