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Sunday May 19, 2024

An old lesson

March 23, 2022

This refers to the article, ‘Governance and the PTI’ by I Hussain (March 21). The writer asks: “Should the no-confidence motion pass and a new government be formed, what economic measures are proposed to improve living standards? Where will the money for any proposed relief measures come from?” Irrespective of whether the no-confidence motion passes or not, the government should try to do what the British chancellor of exchequer, Hugh Dalton, did when the British economy was in deep crises in 1945.

Dalton worked for a sharp reduction in Britain’s expenditure — particularly in defence and civilian war terminals — and ruled out all elaborate schemes. He then increased revenues by adjustment in taxes and provided more for education, housing and all social services. In 1948, his successor collected a record surplus of £636 million in taxes. Our finance and planning ministers would do well do follow in the footsteps of other leaders who got their countries out of economic crises.

Abdul Majeed

Islamabad