Financial analyst Ali Nasir said on Wednesday that it was very encouraging that International Monitory Fund (IMF) at the end of talks in Dubai agreed on granting promised assistance under 2008 standstill arrangements before the upcoming budget 2011.
Talking to a news channel, he said IMF initially refused to talk and the matter was shifted to European Union. But after some times IMF resumed its stance and demanded Pakistan to bring economic reforms in the country, and cut the expenditures.
Ali Nasir said IMF was an international financial donor organisation, which had its own terms and conditions. He said, "it is impossible to get rid of foreign aid in the present circumstances. Our foreign reliance can not be cut short as we are facing financial short comings".
Replying to a question, he said Reformed GST imposition was not an encouraging thing in the present circumstances. It is another name of the Value Added Tax (VAT) which is already in practice but now the need is that it should be imposed only on industries not on the common people who are already facing financial problems.
He said to recover the budget deficit imposition of RGST was not the only solution eg if sugar prices were already on high level than by RGST it would further increase and deteriorate the situation. Replying another question, he said the rich was becoming more richer while poor more poorer. More taxes must be imposed on the rich persons who always got themselves exempted from paying tax.