No Result
View All Result
Tuesday, June 10, 2025
MM News
اردو
  • Home
  • Latest News
  • Showbiz
    Areej Mohyudin

    We realize importance of parents when they pass away: Areej Mohyudin

    Ana de Armas in a scene from "Ballerina." (Lionsgate via AP)

    How to watch Ana de Armas’ ‘Ballerina’ online

    SI Film

    Love Guru Review: Hit or flop?

    (Credit: Europa Press)

    ‘I Am Georgina’ won’t return as Netflix ends show about Ronaldo’s girlfriend

    Ali Zafar drops first Shina song ‘Karay Karay’ on Eidul Adha

    Ali Zafar releases first Shina language song ‘Kare Kare’

    Hania Aamir, known for her lively spirit, surprised fans with a photo carousel from Makkah, Saudi Arabia while Sana Javed, dressed in a peach ensemble, celebrated Eid with her cricketer husband Shoaib Malik

    Pakistani celebs celebrate Eidul Adha 2025 in style

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
MM News
  • Home
  • Latest News
  • Showbiz
    Areej Mohyudin

    We realize importance of parents when they pass away: Areej Mohyudin

    Ana de Armas in a scene from "Ballerina." (Lionsgate via AP)

    How to watch Ana de Armas’ ‘Ballerina’ online

    SI Film

    Love Guru Review: Hit or flop?

    (Credit: Europa Press)

    ‘I Am Georgina’ won’t return as Netflix ends show about Ronaldo’s girlfriend

    Ali Zafar drops first Shina song ‘Karay Karay’ on Eidul Adha

    Ali Zafar releases first Shina language song ‘Kare Kare’

    Hania Aamir, known for her lively spirit, surprised fans with a photo carousel from Makkah, Saudi Arabia while Sana Javed, dressed in a peach ensemble, celebrated Eid with her cricketer husband Shoaib Malik

    Pakistani celebs celebrate Eidul Adha 2025 in style

  • Thought Box
  • Business
  • Opinions
  • Technology
  • The Other Side
No Result
View All Result
No Result
View All Result
MM News
اردو
  • Latest
  • Showbiz
  • Thought Box
  • Business & Stock
  • Opinions
  • Technology
  • The Other Side-Pakistan
Home Opinion & Editorial Editorial

IMF and elite capture

Editorial by Editorial
September 25, 2023

IMF chief Kristalina Georgieva has urged Pakistan to “collect more taxes from the wealthy and protect the poor people” amidst soaring inflation. This advisory given to previous governments has been largely ignored and the poor have been heavily taxed.

The inflation rate for August leaped to 27.4 percent, shrinking household budgets. The same month exorbitant electricity bills were imposed causing outrage and widespread protests. This was followed by a record increase in the price of petrol. The government failed in its promises of providing relief due to its commitments with the IMF.

Pakistan has a regressive tax system where the burden falls on the masses. The price hikes and taxes take a large part away from their incomes. Rather than widening the tax base, the government resorts to imposing even more taxes on the burdened salaried class. Several sectors remain untaxed or undertaxed but the government risks earning the wrath of the elite.

There is a need to increase taxes on undertaxed sectors such as agriculture, real estate, wholesale and retail to meet the IMF’s fiscal requirements. The true potential for taxation of real estate has been estimated at Rs500 billion and Rs234 billion for the retail and wholesale sectors. The agricultural sector is responsible for one-fifth of the GDP but contributes just one percent to tax revenues.

Pakistan has been unfortunately unable to expand taxation. Despite several reform attempts, the tax-to-GDP ratio hovers around 10 percent of the GDP. The inability to expand tax revenue contributes to several public delivery gaps such as providing electricity, clean drinking water, and nutrition. The skewed tax system also affects the economic structures as it focuses on consumption and import duties, leading to a recurring payment of balance crisis.

Elite Capture – a form of corruption whereby public resources are biased for the benefit of a few individuals of superior social status in detriment of the welfare of the larger population – is common in Pakistan. These have been termed the ‘One Percent Class’ and deem themselves above the law. The elites have access to resources and are willing to drain the country to maintain their status quo.

The World Bank has warned that Pakistan’s economy is at a turning point where it has to decide to remain under elite capture. Its policy decisions are driven by strong vested interests of military, political, and business leaders. These must change course for a brighter future. Pakistan needs a policy shift to decide the way forward and can start by taxing the elites.

Tags: elite captureIMF
ShareTweetSendShare
Previous Post

Communicating with Allah

Next Post

Saudi ambassador gifts Umrah ticket to Pakistani differently-abled artist

Related Stories

Opinion

The Betrayals Within: From Homes to Halls of Power

June 5, 2025
Opinion

AIF 2025 – A Rallying Cry for Unity in a Fractured World

May 31, 2025
Opinion

Eurasian Economic Union at 10: Looking Beyond the Decade

May 29, 2025
Opinion

Crimea at the Crossroads: Development, Identity, and Geopolitics

May 29, 2025
Opinion

A Bond Steeped in Friendship and Tea

May 22, 2025
Opinion

Kazakhstan’s Rising Arc

May 21, 2025
Opinion

Russia’s Great Victory Day – A Triumph of Courage and Sacrifice

May 21, 2025
Opinion

Israel stands firmly behind India in hostilities against Pakistan

May 9, 2025
Opinion

Britain’s Interference in China and Domestic Challenges

April 29, 2025
Opinion

Revamping Pakistan’s Outdated Education System

April 10, 2025
Next Post

Saudi ambassador gifts Umrah ticket to Pakistani differently-abled artist

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Stories

Image: APP
Business & Stock

PSX continues bullish trend, gains over 800 points

by MM News Staff
June 10, 2025
file photo
Business & Stock

Pakistani rupee appreciates by 17 paisa against US dollar

by MM News Staff
June 10, 2025
Motorway Police
Top News

Motorway Police issues travel advisory ahead of post-Eid traffic surge

by MM News Staff
June 10, 2025
Budget 2025 - Tax Evaders
Business & Stock

Budget 2025: Major crackdown on tax evaders under review

by MM News Staff
June 10, 2025
Areej Mohyudin
Film & TV

We realize importance of parents when they pass away: Areej Mohyudin

by MM News Staff
June 10, 2025

Opinion

munir ahmed oped
The Betrayals Within: From Homes to Halls of Power
June 5, 2025
- Munir Ahmed
munir ahmed oped
AIF 2025 – A Rallying Cry for Unity in a Fractured World
May 31, 2025
- Munir Ahmed
munir-ahmed-oped-2-1140x1140
Eurasian Economic Union at 10: Looking Beyond the Decade
May 29, 2025
- Munir Ahmed
No posts found
See all

Weather Updates

File photo
Bakra Eid 2025

Eidul Adha holidays: PDMA issues heatwave alert

by MM News Staff
June 5, 2025

Punjab Provincial Disaster Management Authority (PDMA) has issued an alert regarding temperature rise and...

representative image

Severe heatwave warning issued nationwide for Eid holidays

June 5, 2025
President Asif Ali Zardari

World Environment Day: Climate disasters displace millions in Pakistan: President

June 5, 2025
Image: ET

Weather updates for Karachi and other parts of country

June 5, 2025
See all

Prices

Gold rates
Business & Stock

Gold prices remain stable in Pakistan, 10 June 2025

by MM News Staff
June 10, 2025

Gold prices in Pakistan are generally stable today. According to reports from the international...

Foreign Currency Rates

Foreign currency exchange rates in Pakistan, 10 June 2025

June 10, 2025
Solar panels installed at a Peshawar park to meet lighting needs. (Image: Dawn.com)

Govt likely to impose 18% sales tax on solar panels in budget 2025-26

June 6, 2025

Karachi consumers get Rs2.99/unit relief, power rates hiked elsewhere

June 5, 2025
See all

Transport News

Motorway Police
Top News

Motorway Police issues travel advisory ahead of post-Eid traffic surge

by MM News Staff
June 10, 2025

In view of the expected traffic pressure at the end of the Eid holidays,...

File

Karachi Green Line BRT to receive Rs42.7 billion in PSDP 2025-26

June 9, 2025
Lack of adequate public transportation facilities in Karachi has made rickshaws a popular transport.

Sindh govt bans four-seat rickshaws in Karachi

June 6, 2025

Air Karachi granted regular public transport license

June 5, 2025
See all

MM Digital (Pvt.) Ltd.

MM News is a subsidiary of the MM Group of Companies. It was established in 2019 with the aim of providing people of Pakistan access to unbiased information. Contact Details: 03200201537

Quick Links

  • Home
  • Advertise
  • MM News Urdu
  • The Other Side-Pakistan
  • Contact Us
  • Privacy Policy

Top Pages

  • Latest News
  • Showbiz
  • OP-ED
  • Technology
No Result
View All Result
  • Latest News
  • Showbiz
  • Thought Box
  • Business
  • Opinions
  • Technology

© Copyright 2024 MMNews - All Rights Reserved.