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Opinion Print edition: 2020-03-19

Partly Facetious: Dr Sheikh needs to reduce indirect taxes

"I reckon a switcheroo is in order."
Published March 19, 2020 Updated March 19, 2020 12:00am

"I reckon a switcheroo is in order."
"If you dare refer to a minus one formula I will heap abuse on you, I will..."
"No, though The Khan's speech was extremely disappointing this time but hell! What else could he have said! I mean the kitty is empty, the country is on an International Monetary Fund programme and adjustment of time-bound structural benchmarks is going to be limited though I reckon Dr Hafeez Sheikh may argue that the decision to keep utility rates constant is part of the fight against the coronavirus and..."
"Dr Sheikh needs to reduce indirect taxes on items that are in use by the poor and seasonal or part time workers would need assistance as economic activity is further stifled and..."
"Hey, this is a government, like its predecessors, that relies on indirect taxes for the bulk of its revenue...."
"But the incident of indirect taxes is greater on the poor than on the rich!"
"Yep, but the poor were tackled through injection of 120 billion rupees as direct cash transfers the year before The Khan came to power and now the Ehsaas programme will get 190 billion rupees..."
"But...but...but..."
"There is no but besides when I said switcheroo I meant switch Dr Reza Baqir and Dr Hafeez Sheikh."
"How dare you..."
"Wait, let me give my rationale. See Dr Hafeez Sheikh has never ever negotiated an IMF programme before, and a look at the ongoing programme bears ample testimony to that fact. Actually when he was finance minister during the Zardari era, he was unable to implement the Fund's conditions and the programme was then suspended while Baqir's expertise and let's be honest he is a bright man, is in implementation of the Fund programme in Cairo. So he should be the Advisor on Finance and..."
"So who would be the Governor of the State Bank of Pakistan? Dr Hafeez Sheikh is not going to accept that position I reckon..."
"Dr Hafeez Sheikh's qualifications are perhaps not in formulating a monetary policy either."
"So who should be given that highly prestigious position?"
"I hear the Canadian guy who heads the Bank of England is available and..."
"What! A non-Pakistani descent appointed as Governor? The Khan may look to the UK for inspiration to launch Madinah ki riyasat but not in appointments."
"But to have Pakistanis with little knowledge of the economy and..."
"Shut up, this is the fait accompli, accept it."

Copyright Business Recorder, 2020

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