Currently, Pakistan is in a crisis situation. Some blame can be laid on the previous government’s mismanagement due to inexperience. However, the soaring prices of oil worldwide have also been a key factor in furthering the worsening economic situation in the country. Soaring rates of inflation and subsequent laying off of workers causing unemployment has led to negative sentiment in society. Rising prices have broken the common man’s back and there is not much the current government can do, even though it is trying. Moreover, the budget presented in the national assembly by Finance Minister Miftah Ismail also shows a grim picture of the near future.
The previous government left the country in such a poor economic situation that it will take a lot of time for PML-N to pick up the pieces. Although they are facing much backlash for increasing the prices of petrol, what the public refuses to acknowledge is that the PTI government had kept prices artificially low and so they were as a result making the economy weak in the long run. The IMF had time and again asked the PTI government to increase the prices of fuel as per their program however, they kept it low so as to not water down their popularity. The new government has been forced to take such measures and it is doing so even at the expense of its popularity.
Prime minister Shehbaz Sharif also announced a relief package that will give 2000 rupees to the underprivileged class. Such measures will help those who earn meagre incomes as it will allow them to have a little more in this difficult time. The government is trying to provide relief to people as in the new budget it has also increased taxable income to 100,000 rupees. The previous government had kept the bar at 50,000 which resulted in a low net income for people in a poor economy. Although, the picture seems grim at the moment the government is working tirelessly to provide some ease to the people. In addition to that, it is not lying and is honest about the difficult times that Pakistan is going to face for some time in the future. However, with PML-N’s experienced ministers and Shehbaz Sharif’s known prowess, the economy will be back on track soon.
The budget for the fiscal year 2023 has allocated Rs. 2,158 billion for the Public Sector Development Programme (PSDP). There is a one percent increase in this from last year which shows the government’s enthusiasm for the development of the Public Sector. Moreover, 51 billion has been allocated for education projects and 24 billion for health projects. A country can only prosper with education and health and although the numbers are small compared to the overall budget, the government is working on the development of the nation.
What the PTI government always claimed it wanted to do is now being done by the PML-N government. The PTI government only made the rich richer and left the poor with rags. This government has announced many taxes on the rich that will allow for increased revenue and subsequently better spending on the betterment of the people. People earning an annual income of Rs. 300 million will now have to pay an extra tax of two percent annually and there will be an added tax on hybrid vehicles as well. This policy is progressive as only those who have a sound financial background can afford such luxuries. Therefore, the rich will be taxed.
During PTI’s mismanaged government prices of medicines increased incrementally. So much so that the poor could not afford them anymore. The new government, however, has waived off all custom duties on pharmaceutical ingredients so that locally made medicines become cheaper and everyone can afford medicines.
It has been seen that in countries where small businesses prosper the economy is likely to turn towards the road to betterment. The PML-N government has made it easier for small businesses to work by increasing the tax bracket to Rs. 0.6 million. This will cut the costs of small businesses and resultantly there will be lesser layoffs and better business sentiment.
PML-N has come to power once again and like in it’s previous terms, it will prove to be a good omen for Pakistan and its economy. People must not lose hope as this mess will be cleared and they should hang on for a little while. Under this leadership, Punjab prospered and now Pakistan as a whole will also prosper. The times ahead are difficult but now at least the driver is experienced and is steering the economy towards betterment.
The writer is a freelancer and he tweets from @PirAdnanBodla