ISLAMABAD: Financial analyst Ali Nasir said on Wednesday that it is very encouraging that International Monitory Fund at the end of talks in Dubai agreed on promised assistance under 2008 standstill arrangements before the upcoming budget 2011.
Talking to a news channel, he said IMF initially refused to talk and the matter was shifted to European Union but after some times IMF resumed its stance and demanded Pakistan to bring economic reforms in the country, and government cut the current expenditures.
Ali Nasir said IMF is an international financial organization which has its own terms and conditions.
He said "it is impossible to get rid of foreign aid in the present circumstances" adding "our foreign reliance can not be cut short as we are facing financial short comings".
Replying to a question he said Reformed GST imposition is not an encouraging thing in the present circumstances.
It is another name of the Value Added Tax (VAT) which is already in practice but now the need is that it should be imposed only on industries not on the common people who are already facing financial problems.
He said in order to recover the budget deficit imposition of RGST is not the only solution if sugar prices are already on high level than by RGST it will further increase and deteriorate the situation.
The rate of direct taxes must be imposed in luxuries goods and services to enhance revenue.
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