- The not so rosy side of the economy
On Thursday Asad Umar told the audience at Islamabad Convention Center that in the past 100 days the government has set its direction.
The government fails to cut its expenses while it puts forth an ambitious social development-cum-poverty alleviation programme. The plan to achieve the objectives depends more on non-economic means like determination, hopes, wishes and luck than on solid economic policies . A cursory glance on the facts will bring it out.
In the first quarter, the current expenditure grew by 19pc to Rs1.48 trilion as against Rs1.24 trillion of corresponding period last year. While defence spendings increased, axe fell on public sector development programe (PSDP) which plunged more than 35pc. This indicates the importance PTI gives to social development.
The PTI government took resort to heavy borrowing from the State Bank which acted as before as a pliant tool in the hands of the finance ministry than an autonomous body. This is what the party wants from all institutions.
The PTI plans to invest Rs6,000 billion on schemes connected with social development and poverty alleviation. Where will the money come from?
Imran Khan hopes funds will come from four sources, industrial exports being one. How many years will take an industry which is in shambles because it has failed to innovate to become vibrant and competitive is anybody’ guess. Hopes have been expressed that remittances can be raised from $20 billion to more than $30 billion by offering incentives to expatriates to send money through legal means. Putting an end to smuggling is supposed to be another trick to increase earnings. The fourth is raising taxes, which is something the industrialist lobby around Imran Khan hates most.
What should have been done to raise the state’s income was to bring into the tax net the extra large groups of dodgers beginning with the trading community. Like the PML-N before it, the PTI too is afraid of losing votes if it took the necessary action. The government prepares ambitious plans without specifying the time limit for their fruition.
