How PTI Economic Agenda is Beneficial?
Imran and PTI’s rhetoric is same as roti-kapra-makaan of PPP, but he is good according to surveys conducted by Transparency International, Amnesty International and Environmental Agencies.
There was only 14% of corruption in KPK. 86% of budget harnessing was the best in the history of KPK.
Our external debts are payable, thats why investors and lenders borrow us money. Government is still creditworthy to pay off its IOUs. He wants extra borrowing to be reduced by taxing the wealthy enough to balance revenues with expenditures. 3% difference is not bad, but our difference is exceeding 6%.
Government of Pakistan is still creditworthy. Dont say that its impossible to pay off our external debt.
I am against Populism, but he is the best. We need him. Populism is better than corruption. Otherwise I am against this ideology.
Negatives + Positives = Less Positives. PTI is like this.
Conservative PMLN wants to reduce taxes. When taxes go down, people have enoug money to spend on goods and services, which increases consumption. People also borrow money, which further increases income. But when taxes go down, and population is rising with speed of 1.80 PDR, then social security and pension issues are imminent. When population increases and taxes are not enough, government would have to either reduce excess spending or increase borrowing. When borrowing is increased, debt accumulates, which then indirectly results in increasing revenues to service it. There should be balance between taxes and spending, and Imran Khan says this.
PTI Taxation Agenda
Increasing taxes dont mean that inflation and unemployement would increase. It should be assessed with balanced expenditures and demand for pensions, social security and unemployement rate. All these factors are related to inflationary and deflationary spiral in an economy.
Tax on exports would be lowered. He wants GSTs to be reduced. When GSTs are decreased and income taxes are increased, cost of production decreases but incomes also decrease. When the balance between incomes and cost of production favors incomes, then exports increase, which helps in subsidizing exports for a country dependent on Agricultural products and low tech industrial products. Thats the main issue in Pakistan’s economy.