Pakistan Economy: The extent to which Pakistan’s economy (Pakistan News) has gone into the abyss is not hidden from anyone. Pakistan is continuously requesting for bailout package from International Monetary Fund i.e. IMF. Now IMF has given advice to Pakistan. IMF has asked Pakistan, which is facing cash crisis, to tax the rich and protect the poor.
SCROLL TO CONTINUE READING
IMF Managing Director Kristalina Georgieva held a meeting with Pakistan’s acting Prime Minister Anwarul Haq Kakar on the sidelines of the United Nations General Assembly (UNGA). He told Kakar to tax the rich and protect the poor.
‘Impact more taxes on the rich’
After the meeting, Kristalina said, ‘I told the Prime Minister of Pakistan to impose more taxes on the rich and protect the poor. I am sure the people of Pakistan also want the same.
The meeting is also important for Pakistan as it seeks approval from the IMF to provide some relief to its citizens on electricity bills, which has triggered nationwide protests and anger among the local people, who are demanding higher taxes and rising electricity rates. Let’s question the government for increase. It is impossible for them to pay their bills.
The pain of the common people spilled over
Mohammad Imran, a local resident of Islamabad, said, ‘Today, fuel prices have increased to record levels, rates of power units have increased, inflation has increased, there are no jobs or business to do. This government imposes more taxes and increases prices. All this is being done to the people who pay their bills.
Imran said, ‘There is no difference in these taxes for the rich and the poor. People are committing suicide because they can no longer support their families. The IMF and this government need to keep these good things to themselves. Because the poor in Pakistan are committing suicide. Middle class families have become poor and the rich are enjoying the pleasure of earning illegal money through corruption. He has no worries.
‘No one gives loan, no one has money’
Amanullah, a laborer in Islamabad, said, ‘I work in the construction field. I have a family of five. There is no work for the last nine months. Electricity bills are so high. Petrol prices are so high. I also go anywhere on my bike to find work. Now no one even gives loans because no one has money. Can this government tell what wrong I or my family have done? Have I stolen money or committed corruption? No. But still, it is I and people like me who are suffering.
Inflation (year-on-year) in the country has increased to more than 27 percent in August. Due to this, the budget of every household has shrunk, while most citizens are in debt, which they cannot repay. Increased electricity bills, high tariffs and continuous increase in fuel prices have become a big challenge for every household in Pakistan.
Get one month’s salary after 60 days
Abdul Rehman, another resident of Islamabad, said, ‘I am working. My company has said that they will give me one month’s salary after 60 days. I accepted the job because there were no jobs anywhere else. Now, when the government will increase the prices of fuel, electricity, gas and basic commodities every 15 days, how will I manage my household budget? By the time I get paid, my household expenses have increased at least four times in 60 days. It is crazy to think that anyone in Pakistan can do this. How to survive in these circumstances.
On the other hand, the interim government has raised its hands on the growing financial crisis in the country and has said that it is bound by the agreement with the IMF and cannot take any financial relief decision without approval from the IMF.
Same tax on rich and poor
IMF Managing Director Georgieva said, ‘We agreed on the need for strong policies to ensure stability, promote sustainable and inclusive growth, prioritize revenue collection, and protect the most vulnerable in Pakistan.’
Whereas the government has agreed to follow the orders of the IMF. Local people in the country argue that the tax is being implemented on everyone including the middle and poor class.
‘IMF-Government killed the middle class’
Nadia, a working woman in Islamabad, said, ‘IMF says that the rich should be taxed, but in Pakistan the poor and the rich are being taxed in the same way. The rich get away with tax evasion while the poor are targeted for bill payment and collection. There are only two categories left – rich and poor. This government and the IMF have killed the middle class.
Nadia further said, ‘IMF says that Pakistani government should impose tax on the rich. I think they first need to do a survey and find out how many people out of the total population of the country fall in the category of rich or middle class. They will be shocked to see that most of the country’s population has fallen to the level of poverty today due to back-breaking inflation.
(Input- The Don/Agencies)