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This blog is for students, managers and those lay people who are interested to contribute to, comment on or simply share their workplace problems and are keen to learn about issues relating to public finance, corporate finance and macro-economic management affecting their lives.

Sunday, September 19, 2010

If you have a positive mindset, there is no dearth of good news....even in Pakistan.

It has repeatedly been discussed in these pages that Pakistan’s tax-to-GDP ratio is extremely  low as if the entire country is thriving on the income tax collected from a very few people. It was also feared that the unjust system of taxation in Pakistan was enough to trigger a public revolt. The answer to this question undoubtedly lies in the expansion of tax base and bring those into the tax net who have only looted and plundered but have failed to pay back. This was more important in the current crisis when even the US had informed that there was a limit to their generosity. The American taxpayers were naturally asking a question as to why they should sacrifice for Pakistan’s flood victims when Pakistani fat cats are indifferent to the plight of their fellow countrymen. In this connection, read more at a blog post titled, why should American taxpayers sacrifice for Pakistan flood victims?

It seems that Pakistani government has realized the problem and has decided to broaden the tax net. Online has reported that Pakistan has assured US and other donor agencies that it will broaden its tax base and enhance the number of tax payers to come out of the current economic situation besides implementing new GST system. It was agreed upon in the meeting between US special envoy for Pakistan and Afghanistan, Richard Holbrook and finance minister Abdul Hafiz Sheikh and his economic team on Saturday that Pakistan would extend its tax net and enhance the number of tax payers. How this proposal will be implemented and which powerful segments of society manage to escape tax-net is yet to unfold. But the fact is that Pakistani taxpayers should be grateful to USA on whose pressure their number will increase leading to lessening of burden on the existing taxpayer. Let us sincerely hope that the decision is taken and implemented without political considerations. If you have a positive frame of mind, there in no dearth of good news....even in Pakistan.

According to finance ministry, the agency reports, it has also been finally decided that meeting of Pakistan Development Forum will be convened in November wherein Pakistan will present before its economic stake holders the details about reconstruction of flood affected areas. The countries which had made aid pledges for Pakistan during Tokyo conference but had not delivered them so far would be contacted and urged to release the pledged aid soon for reconstruction of flood affected areas in Pakistan, US assured. Finance ministry sources told US had also assured to provide more relief assistance for flood victims. However Richard Holbrook has still his reservations over utilization of relief aid. US have also welcomed the constitution of National Council to ensure distribution of foreign relief aid for flood stricken people in transparent manner.

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