AS the National Assembly passed the mini-budget worth Rs 170 billion to pave the way for resumption of the stalled programme of the International Monetary Fund (IMF), Finance Minister Ishaq Dar held the poor economic policies of the PTI Government and mismanagement in the power sector responsible for placement of additional burden on the masses. Winding up speech on the Finance (Supplementary) Bill, he informed the house that the IMF initially wanted the Government to raise additional 800 billion rupees but the negotiating team led by him took ten days to persuade the Fund delegation to bring it down to a minimum level of Rs. 170 billion.
The Finance Minister has intimate understanding of the ins and outs of the prevailing economic conditions and the factors behind the dismal situation and, therefore, one would not tend to differ with him when he points accusing fingers towards the previous government as there was universal consensus about the inability of the PTI Government to manage the economy effectively. Similarly, it is also known to all that the power sector needs drastic reforms which were not carried out in the past but little has been done by the present government as well to address the challenge. Like its predecessors, the coalition government too has laid emphasis on increasing electricity and gas tariff, compounding inflationary trends caused by massive devaluation of rupee and frequent upward adjustments in the prices of POL products. The previous government is rightly blamed for lack of prudence in its economic policies but the question arises whether the state of economy has improved ever since assumption of power by the present Government. No doubt, credit goes to the Government for avoiding a default in the face of a multitude of problems and the current account deficit shrank 90.2 percent to $ 0.24 billion in January 2023 from $2.47 billion in the same month last year due to import curbs but the achievement had a cost for the common man as prices have skyrocketed due to shortage of commodities and raw material. President Dr Arif Alvi declined to promulgate ordinance to give effect to the mini-budget advising the Government to go through Parliament but the objective of presenting the proposals before Parliament has not been realized. Parliament is supposed to debate the proposals presented by the Government and give its input for making them bearable for masses but that has not happened as the treasury benches rejected saner amendments moved by the opposition envisaging a reduction in the GST rate and withdrawal of taxes on marriage ceremonies and sugary juices. It is high time general taxation is avoided and tax should be imposed on those who earn handsomely but contribute little or nothing to the national kitty.
