Economics & Business

Power tariff hike a blow to economy, poor

Islamabad:The Pakistan Economy Watch (PEW) on Saturday said that two per cent hike in power tariff is a serious blow to economy and poor people. Power tariff hike coupled with recent policy rate review amounts to damaging economy for the sake of foreign masters, it said.

Reformed GST will not substantially add to government kitty; it will only trigger inflation and bribery, said Dr. Murtaza Mughal, President PEW. “New taxes aren’t acceptable before imposition of agricultural income tax which the lawmakers are avoiding since decades,” he said.

He said that the recent policy rate hike is unfortunate; it suggests that the central bank is not ready to believe government’s ability to support fiscal needs from revenue. State Bank of Pakistan is yet to realise that economy is unable to swing against this tide. SBP will continue to hike interest rates in future, he said.

He said that new valuation table for urban property introduced by government of Sindh indicates the confusion among the provincial tax officials. -Pak Economy Watch

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Haroon Akram Gill

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