Pakistan has a talented workforce that can help the country stay on the path to progress. But policymakers keep holding on to hopium, ignoring the stark realities of the country.
In an article published a few weeks ago, World Bank officials wrote a detailed piece on Pakistan’s economy, highlighting the need to build on the crisis that is providing an opportunity for reforms and redefining operations. They also added that Pakistan can well make the present crisis a turning point.
Indicators suggest that measures taken so far by the SIFC show that the trough might be behind us, much to the disappointment of detractors who were wishing for bankruptcy and chaos.
Steps like the FBR’s plans to tax retailers have also helped stabilize the economy. The FBR itself has undergone various structural changes. In 1944, a revenue division was created under the Ministry of Finance to deal with tax-related matters. Later, the FBR became an attached department of the Ministry of Finance.
After the FBR Act 2007, the tax regulator was authorized to manage all tax laws and was responsible for policymaking, but in 2018, the Ministry of Finance was given powers to draft tax policies to split administration from tax policy decisions. At present, tax policy is with the Revenue Division and the FBR operates independently. But will these changes last only till the IMF dictates?
Pakistan’s salaried class contributed Rs158 billion in the first half of this fiscal year, marking a 38 per cent increase from the previous year. The salaried class now ranks fourth........