Burden of pandemic, financial crisis shifted on masses

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Masses paying Rs45 tax on every liter of petrol
Devaluation, inflation tools to boost revenue

The Pakistan Economy Watch (PEW) on Saturday said the entire burden of pandemic and financial crisis has been shifted on the poor masses which has added to their problems.

Many countries have increased taxes on rich to tackle coronavirus-related losses but here masses are being made to pay, it said.

Masses are paying Rs45 tax on every liter of petrol which must be reduced immediately, said Dr. Murtaza Mughal, President PEW and Convener FPCCI Central Standing Committee on Insurance.

He said that devaluation and inflation are two tools to boost revenue but it remained counterproductive during the last two years despite forty percent erosion in the exchange rate and imposing new taxes of Rs1000 billion.

The devaluation has not helped boost exports but taxes masses in a way which has compromised their buying power beyond their capacity.

Interest rates were kept high to attract hot money which benefitted foreign investors at the cost of the local economy while bonds worth Rs121 billion were issued on high interest rates a day before interest rates were slashed by one percent which is amazing, he said.

The completion of Peshawar metro has become a dream despite a 100 percent hike in the cost of the project while the outcome of inquiries against sugar, wheat, IPPs, medicine price etc. have also become a dream which may never come true.

The tariff of electricity is being hiked across the country after Karachi which will jolt the economy while another gas price hike is also on the cards which will unleash a new wave of inflation, he warned.

In: Pakistan Economy WatchAuthor: pakistaneconomywatch