SHAFAQNA PAKISTAN (Shia News Agency)
The major driving force behind Pakistan economy is IMF. Since 1970s Pakistan has been seeking help from IMF but during previous two regimes, Pakistan’s dependence on IMF has increased to many extents. Previous yeart Pakistan tool about 5 billion dollar loan from IMF whose burden finally shifts on the poor public. Sometimes in the shape of increased petrolieum prices, sometimes in the form of increase in electricity tariifs and sometimes in the form of rise of GST. However this time IMF has demanded of to to slash its PSDP by 24pc. According to documents released by the IMF last week, Pakistan’s consolidated PSDP has been slashed by about 24pc to Rs897bn from Rs1,175bn allocated in the budget 2014-15. The federal PSDP spending was revised to Rs467bn from the budgetary allocation of Rs525bn, a reduction of Rs58bn or about 11pc, reported by dawn. As a consequence, the provincial development spending has been worked out at Rs430bn against Rs615bn allocated in the budget and approved by the parliament and provincial assemblies. This means a cut of Rs185bn or 30pc. In overall terms, development budget for the current fiscal year is estimated to have dropped to 3.2pc of GDP from 3.4pc last year. The provincial spending has declined to 1.5pc of GDP from 1.7pc last year, while the federal spending remained unchanged at 1.7pc of GDP. In a written statement, Finance Minister Ishaq Dar has assured the IMF that the budget 2014-15 is in consistent with its programme objectives aimed at lowering the deficit, excluding grants, to 4.8pc of GDP.Applying cut in development programme has been a traditional instrument for the government to rein in the fiscal deficit limit committed to the IMF. The deficit for the current fiscal year was set at 4.8pc of GDP, but the government has been indicating some slippages because of higher expenditure on security and resettlement of people displaced by the military operation in North Waziristan.The gimmicks of Ishaq Dar and IMF is out of the sense for a layman, what he understands is that he wants to live an easy life but if government continues to take loan from IMF and continues to slapping layman from one or the other tax, it would certainly making their lives hard. One wonders that why Ishaq Dar does not catch the big fishes that are evading tax of billions every year. Rather than squeezing the rich, Finance Minister is dropping bombs on already dying poor class.
pakistan.shafaqna.com
