Prime Minister Nawaz Sharif has felicitated the nation on the discovery of huge reserves of iron, copper and gold in Chiniot area of the Punjab. The government is facing severe shortage of gas and electricity while the law and order situation is another areaof concern,challenging peace and security not only in Pakistan, but also in the region. The prime minister has correctly said that the reserves found in the province are the national asset sand these are not for the Punjab alone.
The main thrust of every government is to develop economy on modern lines. To fill the gap of electricity shortage, the government has tied all its hopes on the Turkmenistan-Afghanistan-Pakistan-India gas pipelineproject as the energy crisis are adversely affecting industrial growth in the country. The government is also seeking to amendthe anti-money laundering law to stop conduit of finance to the terror groups in Pakistan and minimize tax avoidance and corruption. Pakistan is one of the countries severely affected by terrorist activities.
The IMF has asked the government to introduce reforms in the tax administration and improve tax compliance and enforcement of rules and regulations through anti-money laundering tools. The use of modern technology and data sharing strategy can help reach potential taxpayers who are earning taxable income, but do not pay tax. The government should note in clear terms that giving more powers to tax machinery will not serve any purpose, but will increase corruption. It will be plausible if the government devises a mechanism to broaden the tax net and effectively implement other laws to maintain financial discipline in the country.
The discovery of the mineral reserves is a good news in bad circumstances, but the administration of the country also needs to be overhauled. On one hand, the government needs to adopt austerity measures while on the other hand it has to take necessary steps to streamline industrial environment as well as enhance tax-to-GDP ratio. There is a need to introduce efficient, transparent and equitabletaxation system to rid the nation of donor agencies.
The government is looking toward the IMF instead of taking steps for mineral development of the country. An earlier newspaper report suggests that Pakistan has huge mineral reserves in Northern Areas and the report went to oblivion afterward as it is a routine in this country. The terrorist groups have made a big dent in the national economy and there is a need to stop their funding.