HYDERABAD: Former Federal Finance Minister Miftah Ismail has said that reforming Pakistan under the current system is impossible; a complete overhaul of the system is essential, as only 1% of the elite class enjoys all the country’s resources.
Addressing traders and industrialists at the Secretariat of the Hyderabad Chamber of Small Traders & Small Industry, he emphasised that to make Pakistan prosperous and stable, it is crucial to strengthen businesses and uplift the middle class.
He criticized the government for buying LNG at $7-8 and selling it at $14 while still failing to end load-shedding due to the flawed system. He said that all institutions in Pakistan are embroiled in blame game instead of addressing necessary reforms.
Miftah Ismail says fiscally possible to remove electricity taxes without disturbing primary surplus
He highlighted the elitist tendencies, pointing out that out of 486,000 schools, only a few institutions funnel individuals into bureaucratic and judicial positions, essentially controlling Pakistan’s decision-making process. He mentioned that flaws in our policies place a 38.5% tax on salaried individuals and 49.5% on traders and industrialists, a collection approach that is entirely unworkable.
Ismail proposed that power be decentralised to the district level, enabling district and divisional administrations to have authority over education, health, and law enforcement. He remarked that while global powers cannot afford Pakistan to default, reliance on IMF assistance may prevent default but not drive development. For growth, systemic change and comprehensive reforms are imperative, he said.
However, Acting President of the Chamber, Ahmad Idrees Chohan, stressed the urgent need for immediate actions to stabilise Pakistan’s economy. He noted that rising electricity and fuel costs are impacting industries, and called for energy issues to be resolved along with a review of IPP agreements. He urged for a simplified tax system to facilitate small businesses and SMEs.
Chohan highlighted the importance of stabilising the rupee, controlling inflation through strong financial policies, and implementing trade policies that enhance exports and open access to international markets. He advocated for low-interest loans for SMEs, upgrading infrastructure, and fostering public-private sector partnerships.
To ensure transparency, he called for institutional reforms, eradication of corruption, and digitization of business facilities to ease payments for freelancers and other enterprises.
He concluded that these measures would not only stabilize the economy but also address key challenges faced by the business community, such as a complex tax system, inflation, and corruption.
Copyright Business Recorder, 2024