The government’s commitment to the IMF means that the upcoming budget may not be ‘people-friendly’. It will be a great challenge for the government as well in deciding on what segments of society can absorb the shock of new taxes. The government’s pledge to the IMF to increase electricity rates and sales tax is a real blow to the lives of ordinary citizens. The government, on one hand, claims to be aware of the miseries of the poor. On the other hand, it is burdening the people with unbearable taxes. People should prepare for unprecedented food inflation, job losses, inadequate social services and pay cuts. The reduction in salaries will contract the economy even further. The government is taking fiscal decisions that will have lasting effects on people while looking at short-term gains. This is not the best way to approach economic policy.
The PTI had promised the people to transform Pakistan into a welfare state. Imran Khan often stresses the importance of wealth creation. However, is it possible to create wealth if the poor are left with nothing at the end of the month for saving or investing or buying assets?
Azfar Siddiqui
Karachi
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