Saving the economy

Pakistan is facing a current account deficit of $18 billion. Taking the IMF bailout package to deal with the issue is an easier option. However, it is possible for the government to avoid the package and manage the deficit on its own. The government should have a look at the following suggestions. To reduce in import bill by $7 to $8 billion, the government should impose a complete ban on import of luxury, nonessential goods. To increase the country’s exports by at least $3 to $4 billion, the government should offer tax concessions and incentives to local industries.

If the government wants overseas Pakistanis to use banking channels to send money, it should reduce the amount of tax levied on such transactions. The government should have proper checks and balances to put an end to money laundering. Through these steps, the government will be able to strengthen the economy while not bowing down to the pressure exerted by foreign lenders.

Arshad Majeed Khawaja ( Karachi )