Govt failed to introduce important reforms to revive economy: PEW
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Govt could not fulfil promises with masses, IMF
The Pakistan Economy Watch (PEW) on Thursday said government has failed to introduce meaningful reforms in any critical sector of the economy to change the situation.
Government could not kept promises of manifesto while it has not shown any progress in promises carried out with the IMF before signing 36-month, $6.2bn Extended Fund Facility, it said.
The critical sectors needing reforms include energy, taxation, trade deficit, autonomy of the central bank, investment, agricultural tax and exports of which none is showing any progress, said Dr. Murtaza Mughal, President PEW.
He said that circular debt has swelled to Rs 627 billion rupees, retailer and wholesalers are at daggers drawn with the government despite the fact that they cover 18 percent of the GDP and less than one percent of the tax collections.
Moreover, agriculturalists covering 20 percent of the GDP are not ready to pay taxes while government has no intention to collect taxes from them. Budget deficit continue to climb and investments as well as exports are going down, he said.
Dr. Murtaza Mughal said that government has not liberated SBP and failed to achieve target of returning loans taken from the central bank.
Tax system is repressive at best, collectors continue to treat taxpayers are criminals widening the gulf of distrust which is unfortunate.
Government has already presented three budgets, it may decide not to initiate any unpopular reforms as it will be focusing more on populist policies to win next elections.
