Islamabad businessmen show reservations over resorting to IMF for Economic Stability

ISLAMABAD: Government should not approach International Monetary Fund (IMF) for another bailout package due to rising global crude prices which might not prove beneficial for the country in the long term.

Business community remained wary of and apprehensive at the prospects of IMF’s return because it will again impose rigid and harsh conditions that would further slow down the economic growth, Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry (ICCI) has stated.

He said that apart from expenditure cuts and tax hike, the business and industry that are being adversely affected by currency devaluation while the policy makers on the top need to devise policies which can infuse a new life in the economy.

ICCI President showed concern that renewed arrangements with IMF, resulting in imposition of new taxes, soaring of mark-up rates and currency devalued would further slowdown business activities that may prove detrimental for the economy.

Yassar Sakhi Butt said that instead of seeking IMF support, Government should find a permanent solution to the country’s economic woes by practicing the policies of good governess, reducing non-development expenditures and investing in development projects which provide a platform for jobs creation and ultimately accelerate the pace of economic growth. He further said that it was the high time for economic managers to develop a comprehensive development plan for the country without external budgetary support.

He stressed that it is high time to bring non-compliant sectors under the tax net so that government could get more revenue by broadening its tax base instead of taxing the existing taxpayers.

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