The government should not approach International Monetary Fund (IMF) for another bailout package due to rising global crude prices which might not prove beneficial for the country in the long term, Islamabad Chamber of Commerce and Industry (ICCI) President Yassar Sakhi Butt said on Tuesday.
He said that the business community remained wary of and apprehensive at the prospects of the IMF’s return because it would again impose rigid and harsh conditions that would further slow down the economic growth.
He said that apart from expenditure cuts and tax hike, the business and industry were being adversely affected by the currency devaluation, while the policy-makers need to devise policies which can infuse a new life in the economy.
The ICCI president showed concern that the renewed arrangement with IMF, resulting in imposition of new taxes, soaring of markup rates and currency devaluation, would further slow down the business activities that may prove detrimental for the economy.
He said that instead of seeking IMF support, the government should find a permanent solution to the country’s economic woes by practicing the policies of good governance, reducing non-development expenditures and investing in development projects that provide a platform for creation of jobs and ultimately accelerate the pace of economic growth. He said further that it was high time for the economists to develop a comprehensive development plan for the country without external budgetary support. He said that the non-compliant sectors should be brought under the tax net so that government could get more revenue by broadening its tax base instead of taxing the existing taxpayers.
