BMP urges government to reduce tax on diesel, improve agriculture sector

Secretary General (Federal) of the Businessmen Panel (BMP), Ahmad Jawad has demanded that the government immediately announce the support price for cotton and production of pulses so that farmers may get incentives, similarly reduce the taxes on diesel fuel because current price of diesel is hitting the masses hard.

He said strong measures to improve agriculture sector and reduction of diesel prices can help reduce the inflation after a blunder of massive devaluation. He said country economic managers need to be realistic, to reduce the inflation IMF recommendations were not the only solution, we should come out from the balance sheets phenomena, our strategy should be field oriented.

Jawad said until and unless rupee is stable the shocks of inflation may be witnessed time and again except some out of box solutions by the incumbent government as inflation cannot be controlled but putting few bucks for Utility Stores.

"The weakening currency impacted the consumers' purchasing power as devaluation fuelled inflation. With devaluation, there is inflation, when there is inflation, your disposable income goes down, which affects consumption behaviour and spending power. There is a decline in aggregate demand, which is why there is an economic slowdown," he added.

He questioned, what we achieved after weaken the rupee? In which economic term where is it stated that what will be the criteria to determine the real value of dollar? It's basically a myth and nothing more and it's a tactic of IMF to pressurise the third world countries because they cannot afford to strengthen their local currency.

That's why our economists present their different formulas which are mostly based on theoretical calculations, he lamented. He said do we make sure that after the completion of IMF programme PKR will be strengthen, I don't think so. "One should remember that devaluation is mother of all evils" and it's a proven history when we went for devaluation, we haven't recovered back.