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?

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