On Tuesday, the prime minister of Pakistan has admitted that the rising foreign debts have combined with the low tax recovery of the country have to lead to an issue of national security. The government says that they don’t have enough money and resources to spend for people’s well-being.
Prime Minister’s Words About Economic Crisis
Imran Khan says, “Our biggest difficulty is that we do not have sufficient money or resources to function our country due to which we have to take loans” in the inaugural ceremony of the TTS (Track and Trace System) of the FBR (Federal Bureau of Revenue) for the sugar industry at Islamabad. He said that if the expenses in a house are more than the income then it will always be in the debt. There won’t be any growth there. There won’t be money to save or invest in anything. Pakistan is also in the same situation.
People Not Paying Taxes
He said that not paying taxes in the existing culture was inherent of the colonial time when people did not like to pay taxes as their money was not used for them. Khan said that due to lack of local resources government has to ask for loans. It seems that now Pakistan has to ask for loans from China or other countries once again.
Loans Taken by The Government of Pakistan
He said that the government took new foreign loans of USD 3.8 billion in the last four months. The Ministry of Economic Affairs data shows that the borrowing of PAK is higher than the loan taken last year at the same period i.e., 18 percent or USD 580 million. He criticized the previous governments to take massive loans. According to him, the loan can be paid only if the people pay taxes. This is the only way the country can overcome debt.
Praising the FBR for Their Tax Collection System
He even praised the FBR for rising tax collection, focusing on achieving the Rs. 8 trillion tax target this year, and for launching the (Tenure Track System) TTS which was kept understudy from 2008. No sugar bag, under the TTS, will be taken out of the factory without a stamp or identity mark. The FBR was also planning to start a system to track the beverages and petroleum sector.
Imran Khan even says that he is thinking of increasing the petrol prices to recover the economic crises in their country. He added that the price of fuel is lowest as compared to other countries.