Islamabad : The Pakistan Economy Watch (PEW) on Tuesday said the government has discounted the hanging sword of IMF to present a budget that is good for the economy and majority of the population

The government should extend the construction package for one year to improve the economic situation while more taxes should be slapped on tobacco, luxuries, and sugary drinks to use this more for ensuring water security and combat climate change, it said.

Six million shopkeepers are doing business worth trillions of rupees therefore they should be brought into the tax net to increase direct taxation, reduce indirect taxation, and ease dependence on loans, said Chairman Pakistan Economy Watch Brig. (retd) Aslam Khan.

In a statement issued here today, he said that reversing taxes on mobile calls, SMS and internet packages is a laudable move as people are now more dependent on these services.

Aslam Khan said that taxes should be increased on luxuries and the income should be used to improve climate and ensure water security as climate change is inflicting a minimum loss of Rs1500 billion on the economy per annum but this sector is yet to get the attention of policymakers which can be judged by a little allocation in the budget.

He noted that IMF wants a 46 percent hike in power tariff which will reverse the economic gains and contract economy pushing millions into the whirlpool of unemployment therefore the demand of the lender should be rejected.

The unprecedented hike in food prices has not benefitted the farmers but the hoarder and profiteers who are now using the budget as a pretext to skin masses which should be frustrated through strict administrative actions, he demanded.