Finance Minister Ishaq Dar has stressed the need for collective efforts to confront the challenges of terrorism, energy and economy facing the country. In a stereotype political statement, he asked the Pakistan Tehreek-e-Insaf to play its due role for the development and prosperity of the country instead of politicking over non-issues like supporting traders strike. Commenting on traders strike, he asked them to refrain from damaging the national economy and grab the golden opportunity of negotiations with the government to resolve the issues. On the first count, the finance minister is right that a concerted effort is required to resolve the economic mess, but putting the burden of responsibility solely on the business community should also not be an option. And in the same way, blindly putting everyone in the tax net to enhance revenue collections is also not a plausible solution to the economic woes. There are thousands of thousands common citizens who belong to middle class and are accounts holders. If one buys or sells property once in lifetime, one will be equally treated as a businessman under the proposed tax arrangements. The government forgets a simple principle while levying additional taxes that development in business and trade automatically increases tax collections. Therefore, the government thrust should be on the development of economy rather than squeezing the businessmen as additional burden on the taxpayers will ultimately affect business and trade activities.
On another note, during her meeting with Prime Minister Nawaz Sharif, World Bank Managing Director Sri Mulyani Indrawati has offered $2 billion loan to Pakistan as a mark of ‘confidence’ over its economic recovery and macroeconomic stability achieved by the government. The assistance package has been offered for a period of four years. According to economists, the government should end its dependence on the World Bank and other donor agencies. Instead, steps are required to be taken to encourage business community rather than deeming every businessman as a suspect. The government should devise transparent methods to spend the loan amount and tax money. An annual breakup of spending should be made public as the taxpayers deserve to know where their money has been used.
The reports emanating from the world media suggest that the country has the potential to become commercial hub of the regional economy provided the issues of security and energy are resolved. Fortunately, a businessman is the prime minister of the country and he knows better the problems and difficulties of the business community more than any other politician. It is his job to satisfy businessmen.
