Pakistan Tehreek-e-Insaf (PTI) leader Asad Umar Friday claimed that the government is considering going back to the International Monetary Fund (IMF), seeking more loans at the end of the current IMF programme. "Both finance minister and the secretary finance have conceded that there is a possibility that at the end of the current IMF programme, another one may be considered," he said in a statement issued here.
He said the federal government's recent decisions and statements indicate that it has started to panic as it becomes clear that despite the billions spent by it on propaganda, the reality of its complete failure in managing and reforming the economy is becoming more and more apparent. "The prime minister had claimed both before and after the budget that with the experienced team that PML-N has, they won't even take 6 months to turn things around as they knew exactly what needs to be done," he added.
Now his economic managers, he said that half way into the parliamentary term, are conceding that even a year from now they will need to lean on the crutches of the IMF. Nothing could be a more vivid summing up of the complete failure of the current government economic policies and implementation, he said, adding that it is also a confirmation that Pakistan is sinking further into a debt trap from where escape is difficult if current policies and practices continue.
Umar said lives of common citizens and the vast majority of business and industry has seen marked increase in difficulties due to the blind acceptance of the current IMF programme coupled with the lack of transparency, corruption and incompetence of the regime. "One would shudder to think what another programme would do to the country if it entered into as being disclosed by the government," he questioned. The failure to reform the tax system has resulted in desperate measures like imposing the highest-ever GST of 50 percent on diesel, he said, adding that there's also an overall increase in GST on all products particularly petroleum products and the draconian increase in minimum tax on services. He regretted that despite massive new taxation in the budget the first quarter of this fiscal year has ended with the FBR revenues, Rs 48 billion less than forecast in the budget.
"The government has neither shown any will nor the imagination to carry out real fiscal reforms. There is virtually no discussion of overhauling the tax machinery which has shown itself to be inept and corrupt over a long period of time. The list of more than 3 million potential tax evaders has disappeared and the government has denied that it exists! There is no serious attempt to bring back looted wealth from abroad," he added. He said that domestic private sector investment and foreign direct investment are near historical lows during the tenure of a supposedly pro-business government, adding businessmen seem to have no confidence in the economic policies of the government.
"Nandipur, Neelum Jehlum, LNG scam, Solar Park, Gaddani Power Park, coal conversion projects, euro bond issuance and devastation of farm economy are all glaring examples of this incompetence and in most cases lack of transparency," he added.
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