As the government failed to agree on making deal with IMF. The government officials have decided to meet the conditions of the IMF before meeting them. Finance Minister Ishaq Dar presented the mini-budget bill in the senate. The bill was presented in National Assembly 2023 as well to meet the conditions set by IMF. Implementing the Conditions of the IMF will help in getting a loan of $6.5 billion. President Arif Alvi refuses to sign the mini-budget program ordinance set by the government. The purposed bill given by the government is to collect more tax to fulfill the desire of the IMF.
There seemed an option to take measures for the elite class which affect them. Reducing the size of the cabinet, cutting the perks and privileges of elites and reducing the expenditure in daily life is an option. The government has again increased the size of the cabinet and imported more luxury cars. The government has increased the GST on different products. A hike in petrol price and electricity price gas prices has seriously affected the common man. A lower class of society can’t handle the burden of a mini-budget. Price hikes and inflation may harm the public and push more people to live under the poverty line.
The government using additional bills has proposed to raise the goods and services tax to 18% from 17% to raise the 170 billion rupees in extra revenue during the current fiscal year ending July. Pakistan is facing an increase in economic challenges, including a growing fiscal deficit, declining foreign exchange reserves, and high inflation. IMF delegates refuse to give a $6.5 billion loan to Pakistan in 2022 because the government failed to meet the key reforms targets.
The summation of a mini-budget is a difficult step toward meeting the conditions set by the IMF to restart the program. Government still doesn’t see the implementation of necessary economic reforms to revive the country’s economy and secure IMF support. Dar asked the public of Pakistan to live a simple life but the elite class rejects the saying of the finance minister. It is a planned decision to make a commission on the economic failure of the country to dig out the core reason for the economic downfall.
The circular debt had reached a destructive level in the country. Severe Damaged has caused the national economy to reach an unrepairable stage. Nation destiny is very much visible yet appropriate measures are not visible by the government. Ishaq Dar said PM Shahbaz Sharif take the national confidence in the finance supplementary bill. The cabinet will soon give the plan to reduce the spending. The Public wants to see the measures which affect the elite, hopefully, and curiously waiting for such an announcement.
Shehbaz Sharif has appreciated the Pakistani-based origin businessman for their magnificent donation to the earthquake victims of Turkey and Syria. An anonymous Pakistani walked into the turkey embassy in the US and donated $30 million for the earthquake victims in Turkey and Syria. Prime Minister mentioned them and said these are such glorious acts of brotherhood that enable humanity to victory over them seemingly invincible odds.
This is a true spirit of Islam and Pakistan is full of such humanitarianism. If the ruling elite Pakistan people donate their wealth to rescue Pakistan’s ailing wealth economy many other businessmen will follow them. Loans need to be evaluate in all respect, especially in terms of national integrity, sovereignty, and security. For some insufficient cash, we should not blindly accept all conditions.
All institutions and the state pillars must consult and the public should taken into trust. Hidden terms and conditions should made public and discussed among the stakeholders, National Assembly, and the Senate. The IMF agenda and the outcome of a deal should shared with the public for ownership.
