Forex reserves increased due to soaring loans : Dr Murtaza Mughal

Lahore: The Pakistan Economy Watch (PEW) on Wednesday said Pakistan has no future in absence of meaningful reforms in FBR and some other critical institutions. Pakistan is not a failing state, it can sustain and flourish for which wealthy class parasitic upon the labour of the masses must be made to pay taxes, said Dr. Murtaza Mughal, President PEW.

He said that nobility enjoyed tax exemptions worth 4.7 trillion in 2014 which was almost double than the exemptions grants in 2013.

Dr. Murtaza Mughal said that masses are being systematically exploited to benefit the aristocracy which has increased gulf between poor and rich.He said that development requires capacity building of institutions, broaden tax base, ensuring justice and just distribution of resources, and provision of enabling environment to the business community. He said that peace cannot be achieved unless policymakers revisit internal and foreign policies as peace is linked economic activities including investment by local and foreign businessmen. He said that widespread corruption in the FBR has damaged its credibility therefore only one person out of two hundred file returns.

Dr. Murtaza Mughal said that rulers as well as masses are happy over increased forex reserves without realising that it is not result of positive policies but loans.Pakistan has secured loans worth 70 billion dollars from US since 1951 while it has signed 12 loan agreements with IMF since 1988 which has added to the wealth of moneyed class while crippled the poor. Culture of fake democracy must be brought to an end which continues to hurting economy while the conflicting definition of national interests forged by different political parties is only dividing the nation.