The consensus between five major political parties and representatives of the business community over vital socio-economic policies is welcome. This was required for the achievement of both immediate and long term national goals. The federal budget for years 2011-12 containing a number of contentious proposals is being presented on May 28. There is therefore a dire need to create a consensus over some of these issues before the budget session An earlier attempt by the PPP to bring the PML(N) on board on a common economic agenda failed because of political rivalry between the two mainstream parties. The business community is to be appreciated for not only bringing together the representatives of the PPP, PML(N), PML(Q), MQM and ANP but also eliciting an agreement on five key issues including energy, regional trade, social protection, macroeconomic stability and madrassah education.
The consensus was also needed to agree upon long-term national objectives that include ending poverty, ensuring hundred percent literacy, creating an environment where business and trade can flourish, and realising the full potential of agricultural growth. The objectives can only be achieved if there is consistency in the economic policies irrespective of which party or coalition is in power. The agreement can however be regarded only an initial step towards further result oriented consultations between important stake holders that include politicians, industrialists, agriculturists, economists and representatives of civil society.
Among the agreements reached is bringing all segments of society which were not paying taxes or evading them under the tax net. This will require taxing the agricultural incomes and real estate transactions besides enforcing the RGST. It would require all the ingenuity on the part of the political parties to put an end to the opposition to taxes from some of the most powerful interest groups. The parties will have to persuade their provincial chapters to legislate on the agricultural tax and their supporters in the business community to agree to the RGST. The resolve of the political parties is going to be put to test during the budget session.
