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Fiscal policy & budget deficits
Pakistan’s fiscal policy faces ongoing challenges due to persistent budget deficits, which threaten the country’s economic stability. A budget deficit arises when government expenditures surpass revenues, leading to increased borrowing and rising public debt. This issue has plagued Pakistan for years, largely due to inefficiencies in tax collection and public spending.
A major issue is the inefficiency of tax collection. Pakistan’s tax-to-GDP ratio is among the lowest in the region, reflecting a narrow tax base and widespread evasion.
The heavy reliance on indirect taxes, which disproportionately impact low-income families, further limits revenue generation and exacerbates inequality. To improve this situation, comprehensive tax reforms are needed. This includes broadening the tax base, enhancing compliance and reducing reliance on indirect taxes.
Public debt has also been increasing due to continuous budget deficits. The government has relied on both domestic and external borrowing to fund expenditure, resulting in a growing debt burden. This accumulation of debt pressures foreign exchange reserves and limits fiscal flexibility for crucial investment in infrastructure, education and healthcare. Effective debt management and fiscal discipline are necessary to prevent further deterioration.
Moreover, public spending needs restructuring. Government expenditure has often favoured non-developmental areas like debt servicing, rather than developmental investment in social services and infrastructure. Prioritizing developmental spending can promote long-term economic growth and reduce the need for excessive borrowing.
In summary, Pakistan’s fiscal policy struggles with deep-rooted issues in tax collection and public spending. Addressing these through targeted reforms is crucial for achieving fiscal stability, reducing budget deficits and supporting sustainable economic growth.
ROYYAM SAQIB
Islamabad
Lack of cleaning
I am compelled to highlight the alarming issue of garbage accumulation in Karachi, Pakistan’s largest city, once renowned as the “City of Lights.” Today, we face a grave environmental crisis that demands immediate action.
The unchecked piles of trash not only tarnish the city’s beauty but also pose a significant threat to the health and wellbeing of its inhabitants. The spread of diseases such as dengue and malaria is directly linked to this negligence.
The consequences are severe and the situation is spiraling out of control. I urge the relevant authorities to take swift and decisive action to address this crisis.
It is imperative that we prioritize the cleanliness and sanitation of our city to safeguard public health.
KIRANAZ MURAD
Karachi
Dengue, a seasonal menace
Observers have expressed concern that this year’s dengue season is not being addressed with the same diligence by the health authorities in Punjab as in previous years. Dengue has become a seasonal menace in Pakistan, requiring consistent annual efforts to keep it under control, with some years yielding excellent results.
Early warning signs during the monsoon season suggested that this year could be problematic. Unfortunately, these concerns now appear to have been justified. A sharp increase in dengue cases in Islamabad, Rawalpindi and Lahore is being reported, indicating a worrying rise in infections.
This alarming situation requires the immediate attention of the government. The real issue becomes evident when considering the capacity of hospitals, as available medical facilities are nearing their limits. If the number of patients continues to rise, hospitals will soon be unable to effectively manage the influx of cases.
Since dengue is spread by mosquitoes that breed in stagnant water in parks and other areas, these locations must be cleared regularly. The city administration must work urgently to prevent this outbreak from escalating into a more serious epidemic that could overwhelm healthcare facilities. The immediate priority must be to save as many lives as possible.
MUNAWAR SIDDIQUI
Lahore
