Tax amnesty scheme a move to avoid IMF: PEW

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Failure of the scheme will be a success for the US
The opposition should stop opposing the scheme

The Pakistan Economy Watch (PEW) on Sunday said the tax amnesty scheme has not been designed to benefit tax doggers but orchestrated to save the country from another loan by IMF on harsh conditions.
The failure of this scheme will be a success for the Trump’s administration which has already waged a war against Pakistan and eagerly awaiting a chance to further damage our country, it said.
A formal request by Pakistan for an IMF loan will be an opportunity for the US which has been humiliating and penalizing Pakistan for its failed policies, said Murtaza Mughal, President of PEW.
He said that country is passing through a critical phase; exchange rate and economy are not in very good shape, twin deficits have emerged as a big threat, forex reserves have been eroded raising concerns among stakeholders.
Murtaza Mughal said that the incumbent government has borrowed Rs6 billion per day from the domestic market which is a record and there is no way the loans can be serviced.
In this situation, the government had no option but to seek IMF’s loan or try to bring back funds hidden in foreign countries.
The amnesty scheme will not damage the economy while IMF’s loan will not be without acceptance of harsh economic and political conditions, he said, adding that it may also hurt CPEC.
He noted that the GDP growth rate continues to improve since 2012-13 while it will hit the mark of 5.8 percent in the current fiscal and over six percent in the next fiscal which is not acceptable to enemies of Pakistan.
Entering into IMF programme will be followed by policies which will result in the economic suicide, he warned.

In: Economy WatchAuthor: AAMIR JAVED