Business Recorder op-ed writer Farhat Ali deserves a lot of commendation for presenting a highly informed perspective on the economic situation following the approval of $7 billion IMF bailout for the country. He has argued, among other things, that “Unlike in the past, when the provincial budgets were out of the purview of the IMF, the new programme is expanded to the provincial budgets and their revenues.
Nearly one dozen IMF conditions directly impact the provinces under the new programme. Reportedly, the federal and provincial governments will sign a new ‘National Fiscal Pact’ by next week to transfer the responsibilities of health, education, social safety net and road infrastructure projects to provinces, according to the conditions agreed with the IMF. All the four provincial governments will align their agriculture income tax rates to the federal personal and corporate income tax rates by amending their laws by end October 2024.”
That the writer is spot on is a fact. No doubt there is discernable improvement in the state of economy or the economy has been nursed by the IMF to semblance of health. In my view, however, the governments, federal as well as provincial, will now be required to pull their socks up for the situation brooks no complacency. In other words, provinces would be required to act proactively and responsibly.
Mehdi Hasan,
Karachi
Copyright Business Recorder, 2024
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