Karim Madad

Financial experts observe that the mini-budget presented by the government in the parliament and the increase in the General Sales Tax (GST) and prices of petroleum products will not serve any purpose but instead exacerbate inflation and poverty.Talking to INP-WealthPK, renowned financial expert Dr. Shahid Hassan Khan said it was not the IMF’s demand to increase the prices of electricity, gas and petroleum products, but the government increased the prices on its own.

He said the people were being misled by the government that it increased the prices on the IMF’s demand.Dr. Shahid Hassan said the IMF had asked the government of Pakistan to impose taxes on the income, but the government imposed taxes on the item being used by ordinary people to fetch loans from the Fund.

“Though Pakistan will get loans from the IMF, followed by other donors and development partners, including the World Bank and Asian Development Bank (ADB), the current financial crisis will be temporarily over. It will also facilitate trade and business activities and opening of LCs at the ports but cause an increase in inflation and poverty, thus further widening the gap between the rich and the poor. As a result, the government will have to approach the Fund again for help,” he observed.

Talking to INP-WealthPK, renowned business leader and coordinator to the Federal Tax Ombudsmen (FTO) Meher Kashif Younis said the increase in taxes and prices of electricity and petroleum products would put more pressure on the businesses and increase inflation. He called for rationalizing the prices, especially of petroleum products, putting less burden on the inflation-stricken people, including businesses.

Credit: Independent News Pakistan-WealthPk