ISLAMABAD: Economic experts have stressed the necessity of the rule of law, strong political will, low-rated broad-based taxes, a robust currency, spending restraint, and business-friendly regulations to attract investments and expedite economic growth in Pakistan.
In a Twitter space discussion titled “Can IMF Stand-By Arrangement and Budget 2023-24 Spark Economic Revival,” hosted by Policy Research Institute of Market Economy (PRIME), an economic expert Rizwan Rowji stressed the necessity of eradicating the scourge of corruption and achieving sustained economic growth of over 8% plus as key to minimizing economic problems.
He stressed that economic revival could not be achieved without strong political will, ensuring the rule of law, and judicial reforms.
Dr Idrees Khawaja emphasized the necessity of important reforms to revive the economy and end uncertainties.
He stressed the key role of the rule of law and a strong judiciary in attracting investment into the country. He said that a swift dispute resolution process and increased awareness about the scourge of corruption in educational institutions are equally vital.
Significance of Taxation for Economic Revival
PRIME Executive Director Ali Salman said that the budget follows previous patterns with a few positive indicators and reforms. There are no considerable reductions in public expenditures, and the privatization impact is very limited. Increased taxes on the salaried class have resulted in tax evasion problems.
Tuaha Adil, a research economist at PRIME, said that Pakistan’s annual expenditures shown in the budget amount to Rs14.46 trillion, representing a considerable increase from the previous year’s ten trillion rupees. Debt servicing saw a 50% rise due to currency depreciation and higher interest rates.
He said that the government wanted to reduce long-term inflation to 5% to 7% by 2025.
A tax and corporate law consultant Zeeshan Merchant said that the government should reduce tax rates, but it was doing the opposite, leading to corporate entities paying less tax than individuals.
