Pakistan has been facing an economic crisis for more than three decades. The citizens are sick of increased inflation and new tax and tariffs.
The country needs more and more capital every single day, but economists are worried that the IMF’s new conditions will trigger value hikes burdening the consumers.
The situation is no longer in the control of the government and its ministers as every vendor is selling everyday items at the prices they want, and no authority or department is trying to control them.
Through our long experience,close observation, and analysis, we can saythat our so-called politicians are the true cause of this crisis in the country.
It has been a culture in Pakistan that any existing democratic government takes a huge amount of loan from IMF and World Bank, and then citizens have to work even hard to pay that back along with heavy interest rates.
This cruel system has to be changed.The person or the minister taking the loan should take this responsibility to himself/herself.
If you are given the opportunity to be in the respected position, and if there are such circumstances that you have to take the loan to run a ministry or a department, you have to take it on your own responsi-bility as the citizens are not in such a fi-nancial condition to return the loan.
A country already struggling financially cannot afford more loans and interests on that.It is our bad luck that such leaders have been appointed to us who are not capable enough of running a state efficiently.
Inflation is at its peak in the history of 75 years of t he country.Every other day, the FBR is imposing new taxes & tariffs on the businesses.
It is getting more and more difficult for small to medium industries and setups to run their enterprises.
In the election campaign, the main focus of this current government was to introduce new industries and get foreign investments in the state.
And now, when some of the companies are trying to establish their businesses, the related departments are imposing taxes due to which they are trying to shift to our neighboring countries, including India and China.
This attitude is not in favor of the country as we need foreign investments to get stable economically, to eradicate unemployment and poverty.
The situation can be controlled if FBR takes a bold step and reduce the taxes on all sorts of businesses to a single digit.
If 5 to 7% tax is imposed on all businesses, there is a chance that no one will ever try to run away from paying taxes.
Moreover, the department can get the required amount which then can accumulate to the whole revenue.
Ifit cannot be done, one way or the other, it is advised that FBR should be made a private entity that can work on its own without any interference from the government.
In our country, the tax-to-GDP ratio is about 12%.Contrary to that, in OECD (Or-ganization for Economic Cooperation and Development),countries collect taxes around 34 percent of their gross domestic product.
This situation has limited Pakistan’s capacity to increase public investment, and ultimately, the country has to rely on indirect taxes on services and goods, which account for about 6.3 percent of our GDP.
Pakistani industry and traders are fully upset by imposing (POS Point of Sales) system by FBR.
Unfortunately, it is not being implicated all the way.Only existing taxpayers are paying and bearing taxes on theirown.
FBR has failed to produce new taxpayers and register more and more people in the category of filers.
FBR is not working at its full potential, and new tax policies have frightened people as they are no more willing to invest in the country.
If this situation remains to continues, Pakistan will fail badly to get more foreign investment which is very crucial at this time.
The foreign reserves worth only $24 Billion are not exceeding due to the reason that the concerned people are not working seriously.
It should be expectingly more than $54 Billion till now.
It was only possible ifthe government had offered completely secure and pressure-free industrialists and traders of Pakistan.
On these bases, only two personalities earn a lot.One is an importer, and the other one is importing department.
On these horrible faces, how we can gen-erate more reserves in the bearing ac-count of the country.
No accountability on departments, so they as they want only in favor of the person who offers them a better attraction in the sense of money.
On this entire corruption, departmental activities should come over,but nobody asked them why they are not doing their job in a better way.
Federal and Provincial Taxes are being imposed in the horrible faces of tax & tariffs.Fuel rates are not at the standard of control.So that’s why most running industrials cannot maintain their said rates to demolish the market standards and at the bases of securing money.
Industrialists secure his money, but distributors store this and hoard this and generate his new rates, which are very unbearable.
So, inflation is rigid at its high level.On thisindecent way of working, FBR, strategy makers, ministry of financial affairs should take serious action to control the situation all over the country.
But in democratic ways, nobody is doing accordingly.So, people get behind.If the government cannot manage, or least interested, so how they can develop their governmental image.
Everyone is drawing their own image to earn money by looting innocent people of Pakistan.
As I consider, I have seen these things only in democratic moments where everyone feels this is only by them and theirs.
So, when the condition got worse, traders and industrialists felt anxious and suffered from the anxiety full atmosphere and were unable to play their positive domestic role to enhance the economy of the country.
In this scenario, all strategy of FBR to maintain favorable conditions remains in vain, and the country cannot move on, even unable toimprove the foreign reserves.
