Economic Meltdown

Spread the love

Naseebullah Khan
The pathetic indicators of the economy of Pakistan reflect that the ecnomy is on ventilator and on the mercy of foreign debt that has made Pakistan as a rentire state.Currently, the GDP growth projection for 2022_23 is 4 percent in 2022 owing to low productivity, hige tax subsidies, along with gigantic trade deficit that is 35.393 billion USD total trade deficit as in 9 months. Imports are 60 billion USD Total expenditures are RS 8487 tr while the FBR revenue of Ra 7909 trillion has not been achieved yet that has resulted in a huge gap in expenditures and revenue. Apart f4om this, total debt and liabilities RS 53544 billion with an increase of Rs 23500 in last 4 years. The Current budget deficit is Rs 4000 billion, while 13.8 billion USD current account deficit was in last 10 months. The twin deficitsFrom July to December 2021 in first 6 months were devestated. The fiscal deficit was Rs 1.372 tr or 2.1 percent of dgp, While during the same period current account deficit was 9.09 billion USD. More, the Circular debt in electricity by the end of April 2022 was Rs 2500 billion whereas, the Circular debt in gas by the end of April 2022 was Rs 1500 billion.Tax to GDP at present is only 9 percent as per IMF report it must be 22.3 or 26 percent.In total tax collection, Direct tax revenue is low as compared to indirect tax s Whose share is around 60 percent There is a dire need of expending retail trade tax, Vehicle tax, Property tax for big properties, shoping malls, hotels, form houses, and plazas as the national tax from urban land properties is less than 1 percent. More, the need of the hour is to remove exemptions of corporate sector that are around 10 billions USD alongside subsidies in which Fuel subsidies arr Rs 1200 billion annually. Apart from this, the elite privileges must be ended. As per theUNDP 2019 report, Elite privilege consumes 17.4 billion USD in Pakistan that is 6 percent of the country’s economy. In the midst of Political instability, inconsistency in policies, Unawareness of World politics, focusing on Agriculture and industrial growth due to energy crisis and climate change, Privatization, tax reforms, reducing non development and non combat military budget, ending elite privileges and subsidies, and tackling trade deficit__ ecnomic fragility will continue. Will sanity prevail by formulating a on loint agenda of signing a charter of economy by all stake holders? Will they stakeholders ever have mercy on the country? They ecnomic situation has reached on the point that requires a complete surgery and reconstruction. It is a battle of now or never. Will our policy makers pay heed?

Similar Posts