Elite capture

While it is understandable that oil and petrol prices are linked with the international market, it is also true that Pakistan is not taking any steps to increase taxes on real-estate profits to generate enough revenues to cushion the impact of price hikes. The IMF will have no objection to targeted subsidies to the poor if Pakistan raises enough revenues to meet its yearly expenditure.

It is an internationally accepted practice to tax all sources of income and raise enough revenues to meet expenditure and invest in socio-economic development. Pakistan is a glaring example of elite capture where the rich enjoy subsidies and tax amnesty schemes. We have borrowed from almost all international financial institutions and also participated in proxy wars, but the billions received in return have never been reflected in productive development projects meant for the poor.

Malik Tariq Ali

Lahore