How Big a Challenge Are Tax Reforms for Shehbaz Government? Economist Dr. Khakan Najeeb
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00:00The biggest challenge for the government is the economic challenge.
00:05For the economy and stability of the country, the IMF has become a necessity for Pakistan.
00:09It is a bullet that can neither be shot nor fired.
00:12We have to do what they say.
00:14The first review of the IMF will take place.
00:16The review mission of the IMF will visit Pakistan in the initial phase of March for negotiations on the next issue of 7 billion dollars.
00:27What can be the no's, do's, don'ts and yeses during this visit?
00:33We have Dr. Khakan Najeeb with us.
00:35He is a very well-known economist.
00:37Thank you very much, Dr.
00:38You joined us.
00:39Dr.
00:40There are two perspectives.
00:41One perspective is that macroeconomic stability is coming.
00:45And the IMF will not have any problem.
00:47The second perspective is that macroeconomic stability is numbers.
00:51And they can also be a coincidence.
00:53Where is the microeconomic stability?
00:55The IMF will also see this.
00:57What can we show in the first review of the IMF?
01:02And what questions can the IMF ask?
01:05Ms. Anika, you have given a very good introduction.
01:08So let me say this thing.
01:10The macroeconomic stability at the moment.
01:12First, I will explain it in three sentences.
01:15What does it mean?
01:16It means that the number of people has decreased.
01:19That is, there is a significant decrease in the rate of increasing prices.
01:22The reserves have built up.
01:24The foreign deficit has largely stabilized.
01:27In fact, it is in surplus.
01:28If I take the last month, this month and half.
01:31And let me give credit to the authorities.
01:34And especially the people of Pakistan.
01:36Who have paid a price.
01:38Whether it is you.
01:39Who have been taken in the highest bracket of a tax.
01:42Keep suffering, Dr.
01:43Keep suffering.
01:44Yes.
01:45So, everyone has paid a price.
01:47To achieve this macroeconomic stability.
01:50And to run with the fund.
01:51But by running with the fund.
01:53You are behaving exactly like the economy.
01:55Alhamdulillah.
01:56That's a good sign.
01:57Which means.
01:58The things I have put in front of you.
02:00The micro things.
02:01You have mentioned it very well.
02:03So now you have time and space.
02:06If you go to PIA.
02:07There is micro reform.
02:08Privatization.
02:09That you are changing the structure.
02:11You are saying that the aviation industry.
02:13The government will not run it.
02:15The private sector will run it.
02:16So then you tried to sell.
02:18You could not do it.
02:19Now, you and I are responsible for this.
02:21You are the authorities.
02:22You cannot put this on IMF.
02:24Energy sector revamp.
02:26Deregulation.
02:27These are all those things.
02:28You have time and space.
02:30What you have to do.
02:31So, the country is standing exactly here.
02:34So, I think we are very very clear.
02:36Now, the first evaluation mission is coming with the fund.
02:38It is absolutely necessary.
02:40Stay with the fund.
02:41So that.
02:42Can cement.
02:43This macro stability.
02:45Otherwise, the stability of the currency.
02:47It will change.
02:49What is going to happen?
02:51Look, there is a mixed performance of Pakistan.
02:53Leaning towards a better side.
02:56Mixed but better performance.
02:58What does this mean?
02:59Look, the difficult things.
03:00I put it in front of you first.
03:02The target of FPR.
03:03It did not complete.
03:04Now, it is written in MEFP.
03:06The document.
03:07If it does not complete.
03:08And varies by 1%.
03:09Then new taxes will have to be imposed.
03:11But the argument on the other side is.
03:13By reducing the interest rate.
03:15And 22% interest rate.
03:17By coming to 12%.
03:19The government is the biggest beneficiary.
03:21Now, you say what is this?
03:239800 billion had to be given in Markup.
03:261000 billion is left.
03:28So, if there is any shortfall of FPR.
03:30Then it is complete here.
03:31But the second thing.
03:32No compromise on this.
03:33IMF should not do.
03:35The Tajir Dost scheme has not succeeded.
03:3723 billion rupees had to come.
03:39A few hundred million rupees have come.
03:41IMF should not do it either.
03:43And you and the authorities should not do it either.
03:45Provincial taxation is fine.
03:47Provincial surpluses are fine.
03:49Reserves are comfortable.
03:51The swaps of our net FX are comfortable.
03:55Government guarantees are fine.
03:57Where is not fine?
03:58We went to impose agriculture income tax.
04:00In October, I said.
04:01They will do it in all four provinces.
04:03Came in January and did it.
04:04In January, I said.
04:05Agriculture income tax will be implemented.
04:07Did not do.
04:08So, IMF will ask.
04:09Why don't they do it?
04:10Anika Sahiba tell me yourself.
04:12Take a tax of 38.5% from me and you.
04:16And the landlord of 1000 acres.
04:18Don't take a tax from him.
04:20This is unfair.
04:21You are right.
04:22It is unfair.
04:23Trying to come under some umbrellas.
04:25To avoid tax.
04:27That is a wrong thing.
04:28Especially when.
04:29Salary class payment is being given.
04:31But in the last.
04:32Very quickly.
04:33Mr. Khakhan.
04:34Answer this.
04:35We have a lot of support on climate funding.
04:37One billion dollars will come from there too.
04:39We are yearning for one billion dollars.
04:41We are going to the IMF.
04:42When we have.
04:43IT exports and different.
04:44Other forms of production.
04:46Manufacturing and exports.
04:48There is a lot of opportunity in even tourism.
04:51Why are we not going there?