The government has decided that the reformed GST will be implemented in phases, almost all issues have been finalized and it is just formality that all the provinces and the centre agree on the implementation of reformed GST and imposing Flood Tax.
To avoid a strong reaction from the business community it is learnt amendments would be made through ordinance, because the major changes made in the budget need approval within parliament.
To receive next installment of loan from IMF the government has submitted an operational plan to the IMF for reducing budget deficit. The fall in the revenues is due to the crippled nature of economy and worst flood making 20million people home less. The weak industrial base and mismanagement of the economy dominated by corruption can lead to an internal explosion.
The policy of appeasement will lead to its logical conclusion. Instead of building up a climate of confidence and understanding the government has willfully created panic, fear and disharmony. The levy of GST and flood tax will additionally burden the flood affected people of Pakistan.
The statement of Finance minister give impression that today we stand internationally isolated, and economically bankrupt. It is a request to the government to reconsider its decision of imposing GST and flood tax.