ISLAMABAD, Aug 17 (APP): Focusing on growth with special attention towards investment, productivity and exports is the way forward for Pakistan, according to a recent research study released by the Pakistan Institute of Development Economics (PIDE).

According to ‘One Year Growth Strategy for Pakistan’ report launched to mark country’s 75th anniversary of independence, Pakistan has the lowest investment rate in neighboring countries and its policy is totally focused on the tax rate and revenue collection, with no priority to investment and growth. Pakistan's debt to GDP ratio is another cause of concern, which is continuously rising over the last decade. Moreover, since 1965, Pakistan has approached International Monetary Fund (IMF) 22 times - the recent engagement with the fund makes it the 23rd time – according to the study.

The research study suggests reforms in taxation to achieve sustainable growth. It calls for a mandatory tax filing and need to abolish distinction between filers and non-filers. According to the study, joint return filing should be introduced instead of individual filing, and income tax should be universal, not segmented. The division of income based on agriculture, dividends and so on must be abolished. An integrated, fair-value single VAT-based system of sales tax is the need of the hour, the study said.

The report terms problems in energy sector as chronicle that successive governments have not been able to resolve so far. Due to mismanagement and weak governance in the power sector, huge transmission and distribution losses occurred. Out of a whooping amount of Rs 473 billion during 2021, Rs 402 billion were recovered through tariff wile Rs71 billion was were added to the circular debt.

The report suggested a decentralized billing system at the DISCO level and need to bring pre-paid meters to the market, which will be bought by consumers themselves. This will create the possibility to minimize losses. It also highlighted the importance of empowering the National Electric Power Regulatory Authority (NEPRA) to facilitate 'wheeling' at the marginal cost to make it attractive for sellers (generation companies) and buyers (bulk power consumers).

Besides these, the study also suggested to focus on market spaces. It proposed that Pakistan must grow at 7-9 percent, adding the other crucial issues would settle through the spillover and the ripple effect of that much growth.

Credit: Independent News Pakistan-WealthPk