ADVISOR to Prime Minister on Finance Dr Abdul Hafeez
Sheikh on Thursday said the journey for improvement of economy was not easy as tax receipts could not be increased. Talking to newsmen in Islamabad, he said there are challenges on economic front but there should be some element of fairness in criticism.
The remarks of the Advisor are in line with his overall reputation of being plain-talker and a straight-forward leader. He has always tried to present true picture of the economy before the people and this is a positive attitude that keeps the masses on board. He defended the heavy loans of 7.6 trillion rupees that the present Government has added to the debt burden in just one year by pointing out that out of total collected tax revenue of Rs. 3.8 billion, debt servicing consumed Rs. 2.1 trillion and then after providing share to provinces, the Government had to borrow to meet defence, development and running of the government expenditure. This is realistic statement as without increasing the tax collection we cannot address our financial and economic challenges. When people are not ready to pay their due taxes and the Government is left with no money to fund defence and development, what option is there to run the state. Debt repayment is obligatory and defence needs have to be met in view of treacherous regional security environment and aggressive posture of our enemy. The Government also had the option to curtail developmental expenditure, which it has already exercised but it has its own ramifications in terms of economic growth and employment generation. It is, however, responsibility of the Government to take concrete measures to increase tax collection by forcing those sections of the society that have been in the habit of having a free lunch.
