ISLAMABAD: The deputy convener of the Muttahida Qaumi Movement (MQM), Dr Farooq Sattar, presented a ‘shadow budget’ on Sunday, suggesting ways to cope with the financial crisis faced by the country.

He said the MQM was the first party in the country to have come up with a shadow budget.

Dr Sattar said the economy was on the brink of disaster and its continuous downslide posed a threat to the country’s survival. He said out-of-box decisions would have to be taken to steer the country out of the crisis.

“The real independence, freedom and sovereignty of a country depends on independent, free and sovereign economy.” Poverty should be eliminated by reducing prices of essentials, including petrol and utilities. Cost of business should be reduced and issue of energy shortage should be resolved. Special support for food and employment should be provided.

He proposed: “Income from all sources above the taxable limit should be taxed, sales tax rate should be reduced from 16 to 12 per cent.

Petroleum levy should be abolished, duty on imports should be reduced by 10 to 15 per cent. There should be no duty and sales tax on machinery and raw materials essential for industries. Federal government can reduce its expenditure by Rs90 billion after devolution of ministries. Departments which are not performing well, e.g. Steel Mills, Pepco, PIA and railways, should be run through public-private partnership.”

Dr Sattar said performance of Federal Board of Revenue should be improved by reducing corruption. “Funds can be generated by reducing abuse of Afghan Transit Trade and under-invoicing and curbing smuggling. The pace of social sector and human resource development should be speeded up through large investments. Overseas Pakistanis should be assigned a greater role in fast and sustainable economic development of the country.”