KARACHI: The majority of traders supported the government option of the IMF bailout package as the only way out of the financial crisis but suggested that the government must ban import of luxury items and curtail lavish expenditures of its ministers and MNAs to pay back the loan on time.

General Secretary Karachi Retail Grocers Group (KRGG), Farid Qureishi said that majority of small traders were waiting for the new budget in June 2009, which would give a clear idea about the impact of the IMF’s bailout package on small businesses.

He thought that the IMF loan might bring in its wake a tough time for the nation, which might be burdened with new taxes and duties on regular items and also on utilities.

However, Chairman Karachi Wholesalers’ Grocers Association (KWGA), Anis Majeed said that the traders felt that there would be no particular impact of the loan on their business. However, there might a general impact to be faced by all businesses alike.

He said that the government had availed the right option and the loan will have to be paid back. The country may again face default like situation if the instalments are not paid in time, he said.

In fact, he said, if the country wants to get out of the crisis it will have to work hard and enhance its exports and create other resources to earn foreign exchange.

Under the IMF plan, the government has been asked to curtail its expenditure. He agreed that there was a need to decrease dependence on imported items. He said the nation should consume only locally made products so that the industry could flourish. The government should either completely ban the import of luxury items or impose heavy duties, he suggested.

President Karachi Tajir Action Committee Imran Saeed Baghpati thought that by taking the IMF loan the government was set to make the life of common man more miserable by imposing new taxes and duties on essential items, besides raising utility charges to repay the heavy loan instalments.

He said that the previous government had sold out profitable state-owned units on the IMF pressure by declaring them a burden on the economy.

The new government will follow the path of the previous governments. It is still working on the IMF/World Bank’s dictation,” he said.

The government has not yet come out with any plan to curtail the perks and package of the ministers, MNAs and MPAs. Their expenditures on travelling expenses, luxury cars, plush houses and foreign tours etc run into millions and ultimately the consumers have to bear the load of paying their expenses from their hard earned income, he said. — ASK