Islamabad Chamber of Small Traders Patron Shahid Rasheed Butt on Sunday expressed concern over IMF directive to cut developmental budget by Rs 360 billion to keep budget deficit in limit.
The IMF recipe will damage society and result in poverty, frustration, and law and order problems, he said.
Shahid Rasheed Butt said the government should improve external trade, increase tax base and curb smuggling to improve its income. A cut of 24 per cent will hurt social sector as it will hit PSDP, ADP and grants, he added.
The veteran business leader said that the situation was outcome of continued fall in the exports which had reduced income of the government which could be reversed through reforms. The concerned officials continue to issue encouraging statements without doing something on the ground, he said, adding that merchandise exports fell for the seventh straight month in January, down 13.9 per cent to $1.77 billion as compared to the same month a year earlier.
“Around Rs 344 billion refunds, especially of textile sector that contributes more than half to the exports, have been pending with the government for years which needs attention.” He said that export sector should be revived, provision of low cost and sustainable energy should be ensured and refunds worth trillions of rupees should be released.