THIS is apropos the article ‘Taxation measures’ (June 14). The PTI-led government presented a tough budget which seeks to increase the taxes and reduce government’s expenditure.

This move will, certainly, address underlying economic challenges of the fiscal deficit and ensure the financial discipline in the economy. However, the Economic Survey of Pakistan paints a dismal picture of the economy with the rate of inflation expected to increase up to nine to 11 per cent. Most importantly, economic growth remained too low at 3.3pc, indicating unfavourable business environment.

In an attempt to expand the tax base, the government has to get non-filers into the income tax net speedily to lessen the country’s dependence on the multilateral finance-lending institutions.

Considering the faltering state of the economy, the PTI needs to clear its priorities and put in place effective corrective measures. This might include revisiting the progressive taxation system, facilitating the business community with greater opportunities and maintaining the ease of doing business, enhanced the infrastructure, strict monitoring on government spending and encouraging foreign direct investment.

The government should implement a stabilisation plan in a way that can ensure an equitable and sustained growth, the fruits of which can seep down to the vulnerable segments of society.

The policies designed to improve the economy have to be fair, effective and people-friendly. The PTI must know that the economy is critical to national security.

Qaiser Rizwan Abbasi
Hyderabad

Published in Dawn, June 20th, 2019