by Humaira
ISLAMABAD: The PTI government placed the country on the verge of default while placing a false emphasis on paying taxes in order to save the country, according to Finance Minister Miftah Ismail, who has taken aim at former Prime Minister Imran Khan whom he holds accountable for the economic woes of the country.
Speaking to a press conference in Islamabad, Mr. Ismail sounded upbeat and expressed his optimism that the pressure on the rupee would ease over the next two weeks. pressure
According to him, the government took no actions that may have caused the rupee to lose value. On the other hand, he noted, the rupee’s value is strengthening as a result of a decrease in our import bill.
proclaims pressure
The government in May put a ban on the import of luxury items which has been lifted only yesterday. He stated that this month and the previous month, the government had to make payments worth billions which had caused the local currency to come under pressure. However, he added that the pressure on the rupee would end by next month, promising to rein in the current account deficit.
The minister said that he would endeavour to ensure that the dollars coming into the country on a daily basis would be more than those leaving. “But to be honest, no one knows the market. I can believe the fundamentals are in my favour but speculation, sentiments also play a role,” he added.
The present coalition administration saved Pakistan from bankruptcy, according to the finance minister, who said that Imran Khan had taken the nation dangerously close to default. He questioned why Imran had brought up the subject now. “You (Imran) are culpable,” he added, adding that the PTI administration’s poor policies contributed to the rise in our trade imbalance. Mr. Ismail asserted that the PTI administration brought in less money.
PML-N government’s tax-to-GDP ratio
“The PTI was unable to match the PML-N government’s tax-to-GDP ratio in four years. We left it at 11.1 percent, and the PTI reduced it to 9 percent. Khan Sahib used to promise to enhance tax [collection], but he consistently decreased it.When you are reducing tax collection every year and increasing your budget deficit, then you will be in debt, he pointed out.pressure
The minister said when Imran backed out on his promise with the IMF then our current account deficit was ballooned. We presented a difficult budget but it was not our fault as Imran had left the economy in tatters, the minister rued.
He also blamed the PTI government for the increase in circular debt, saying that it had gone from $1.1bn to $2.5bn during its tenure. The minister said that the PTI chief did not increase the power tariff for 1.5 years, which is why consumers were not receiving bills with fuel adjustment charges for April. “If electricity consumers have to pay the April fuel adjustment charges, then why we should be blamed for this,” Ismail wondered. He said the previous government increased circular debt by Rs1400 billion.
He held the previous government responsible for the downfall of every sector. He said Imran inflicted significant financial harm to the country by subsidising the price of gasoline and fuel. “Imran made the same terrible mistake as Sri Lanka by offering cheap gasoline. By offering us cheap gas and electricity, Imran tried to ensnare us, Ismail claimed. He criticised Imran for having a four-year period during which Pakistan’s debt increased by 80%. He claimed that the former prime minister granted amnesty to his friends before making a U-turn and giving subsidies to his own people.pressure
Everyone should pay taxes, according to the finance minister, in order to save this nation. He continued, “I have also imposed tax on the children of the prime minister and my own factories.” He announced a tax break for shop owners who use less than 150 units of power per month. According to him, small shopkeepers making Rs 1.2 million annually must pay Rs 36,000 in taxes each year. Inflation management was not Mr. Ismail’s top concern; instead, he intended to prevent the nation from going into default. pressure
He claimed to have provided money to utility stores so they could sell ghee for Rs. 300 per litre, sugar for Rs. 70 per kg, and flour for Rs. 40 per kg. “There is no doubt that inflation has increased in the country. But I cannot help it. We have to save country first. Soon pressure on rupee will ease and with this, prices of commodities will come down,” he expressed his optimism. The finance minister informed that this year we had wheat in abundance. He said that from next month, the government would try to increase its exports.
commodities will come down,” he expressed his optimism. The finance minister informed that this year we had wheat in abundance. He said that from next month, the government would try to increase its exports.
