Economic growth

This refers to the news report ‘Tarin’s litmus test’ (Apr 30). To put the economy on the right track, tough and innovative measures are unavoidable. The first step towards the documentation of the economy and to broaden the tax base should be to demonetise the Rs5,000 note. The government should compress imports to reduce the trade deficit and must focus on increasing exports which are dismally low. Reducing the budget deficit through external borrowings is a perilous strategy and must be avoided. The authorities should also devise a plan to reduce the country’s debt burden. As of now, interest payments are one of the biggest expenses that the country has to deal with.

Foreign remittances are not a sustainable mode of improving the economy and a heavy dependence on them is risky. Roshan Digital Accounts (RDAs) for overseas Pakistanis will not help in raising dollar funds as these account offer high interest rates. If the government wants to accelerate growth, it should allocate a large amount of development funds under the Public Sector Development Programme (PSDP).

Arif Majeed

Karachi