KARACHI
\nFormer finance minister Miftah Ismail Friday said the economy is moving towards betterment and the growth will also improve if it stays that way for the next two to three months following Islamabad\u2019s expected talks on a new programme with the International Monetary Fund (IMF) in April.
\n\u201cI think the dollar market is currently stable, inflation is decreasing and this is a good time,\u201d the former minister said during his appearance on Geo News programme \u2018Aaj Shahzeb Khanzada Kay Sath\u2019.
\nIsmail\u2019s comment comes as Pakistan is set to hold a meeting with the global lender on April 14 and 15 in Washington on a larger and longer loan programme.
\nSharing his thoughts on the economy during the show, the former finance minister added that the State Bank of Pakistan (SBP) is currently buying dollars and there is no restriction on imports.
\nHe lauded the swift decisions taken during the caretaker government by former interim finance minister Shamshad Akhtar and appreciated Muhammad Aurangzeb for maintaining the trend.
\n\u201cIf the next programme with IMF is finalised between June and July, it will all be good.\u201d
\nHowever, he mentioned that the Washington-based lender doesn\u2019t trust Pakistan as much in terms of reforms.
\n\u201cIf we fail to revise the National Finance Commission (NFC) Award and don\u2019t carry out important reforms including privatisation, we will not make any progress.\u201d
\nWhen asked about the possibility of a new IMF programme in light of increasing the tax base and whether this will be practically possible to resurrect the economy, he said: \u201cThe difference this time is that it is a requirement from the IMF and it will not step back.\u201d
\nThe former minister said this has to be done because there is no turning away from it.
\n\u201cYou have imposed as much tax as you could on the salaried class. You have now left agriculture income and property, which is not taxed by provinces because it has a lot of money, while the government does not impose taxes on services. You can\u2019t let these three get away with it. This is injustice with the country if you do so.\u201d
\nIsmail said that there is no option other than imposing tax, adding that the IMF understands that a major sector is out of the tax net, which cannot work like that anymore. The minister also lamented the exemption given to retailers.
\nHe added that agriculture income should be transferred from provinces to the Centre so that no one can evade tax.
\n\u2018Next programme with IMF will be finalised easily\u2019
\nMeanwhile, former chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi also hoped that the next programme with IMF will be finalised easily.
\nRecalling the statements made by former prime minister Imran Khan during the Taliban\u2019s return to power in Kabul, Zaidi said the consequences of the statements were felt in Pakistan, as they weren\u2019t appreciated at the time.
\n\u201cSince that statement, our relationship with Pakistan\u2019s largest lender and its supporter had deteriorated, which has gradually improved,\u201d he said, speaking on the Geo News show, flanked by Ismail.
\nZaidi also recommended revisiting the NFC award.
\nWhen talking about tax reforms, the former FBR chief insisted on mapping to include traders in the tax net, which, he said, is a long-term process.
\nHe also agreed with the former minister on not leaving any sector out of the tax net, as Pakistan does not have a choice anymore in that regard.
\n\u201cWe no longer have any space. We cannot increase tax for individuals and companies more than what it currently is.\u201d
\nThe ex-FBR chief said that while shopkeepers have the power to shut down their shops and cause an artificial shortage of essential commodities, the nation must stand with the government to force them into paying taxes.
\n\u201cIt is important to end this discrimination for Pakistan, as one person is paying 35% tax while another pays 0%,\u201d he said.
\nHe added that the FBR does not have data related to the number of shops in markets across the country.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI Former finance minister Miftah Ismail Friday said the economy is moving towards betterment and the growth will also improve if it stays that way for the next two to three months following Islamabad\u2019s expected talks on a new programme with the International Monetary Fund (IMF) in April. \u201cI think the dollar market is currently […]<\/p>\n","protected":false},"author":2,"featured_media":277685,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-397498","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n