World Big News: Pakistan will have to get 12 billion in 3 months: Dr Hafeez Pasha

Former Finance Minister Dr Hafeez Pasha has said that Pakistan will have to get 12 billion in three months to avoid a balance of payments cr...

Former Finance Minister Dr Hafeez Pasha has said that Pakistan will have to get 12 billion in three months to avoid a balance of payments crisis.

 

PM relief package for fuel and electricity subsidies, which was primarily for the elite, must be scrapped: Former Finance Minister / File Photo

According to details, while proposing the Charter of Economy, former Finance Minister Dr. Hafeez Pasha said that Pakistan will have to get 12 billion within three months by June 2022 in order to avoid balance of payments crisis.

 A comprehensive reform strategy is needed to revive the F-Program as the Prime Minister relief package for subsidizing fuel and electricity, which was primarily for the elite and is estimated to cost about Rs. 400 billion. Yes, we have to give back and we have to come up with a plan to give targeted subsidy to the poor.

 

He suggested that indirect taxes on basic food items like ghee, oil, sugar, spices, vegetables and tea be reduced.

He said that the IMF should also accept it because the good news is that the IMF is coming with a human face, a comprehensive reform package will help revive the IMF program, presented on tax proposals. The move will provide an additional Rs 2,000 billion to the national exchequer on an annual basis.

Proposing the imposition of agricultural income tax, he estimated that the net income of 40,000 to 50,000 farmers is Rs. 1,800 billion annually. The farm sector is providing only 2 billion in terms of agricultural income tax.

Hafeez Pasha, while proposing asset income tax, said that the net rental income of the urban elite is Rs. 460 billion from one canal luxury houses but they pay only Rs. 6 billion through rental income, the income of all civil and military elites. And the assets have immunity and the research done through the UNDP report shows that this elite has been given an exemption of Rs. 4200 billion on assets and income.

He said that for God's sake, the country cannot run on such luxuries. The minimum tax threshold has to be increased from Rs. 6 lakhs to Rs. 10 lakhs. There may be an annual income that is 300 times the per capita income in Pakistan while in India the deduction is at a maximum rate of 30% which is only 10% higher than the per capita income of India.