Loud Thinking

Archive for July, 2024

Prime Minister of Pakistan
Mr. Shahbaz Sharif,

اسلام وعلیکم

I acknowledge your deep concern for the plight of millions of Pakistanis and your efforts to increase tax revenue to improve the conditions of the poorest segments of our society.

However, I would like to invite your attention to the fact that, as officially reported, the Federal Board of Revenue (FBR) has consistently met its tax recovery targets nearly 100 percent over the past several years. Given this success, why do we still face financial distress?

The core issue lies not in tax collection but in the continuous increase in government expenditures. Furthermore, the Finance Ministry has placed additional tax burdens on the already struggling salaried class, who, along with the unemployed, are among the few who pay taxes directly. In contrast, industrialists, traders, and retailers often transfer the tax burden to the general populace through increased prices.

If the government fails to alleviate the financial strain on salaried individuals and the unemployed, it risks losing the support of these critical voting blocs. IMF Chief Kristalina Georgieva has emphasized closing tax loopholes and ensuring the wealthy pay their fair share to mobilize funds for sustainable and inclusive growth. In September, she specifically urged Pakistan to increase taxes on the rich to protect the poor. Unfortunately, your government has taken the easier route of further taxing the already overburdened salaried class.

To address this imbalance, I urge you to consider an immediate reduction of non-development expenditures by 50 percent and development expenditures by 25 percent, alongwith immediately reducing taxes to the extent it were increased over the last year for the salaried class. Such measures would significantly boost the budgetary funds and the government’s income for the welfare of the poor.

The decision rests in your hands and requires considerable willpower, which I trust you possess in abundance.

Warm regards,

Syed Nayyar Uddin Ahmad
+92 321 9402157
Lahore.
nayyar51@hotmail.com

H.E. Joseph R. Biden Jr.
President of the United States
The White House
1600 Pennsylvania Avenue NW
Washington, D.C. 20500

Dear President Biden,

Greetings,

Please accept our heartfelt congratulations on the 248th anniversary of the adoption of the Declaration of Independence.

Over the past 75 years, the friendship between Pakistan and the United States has been characterized by significant cooperation and support. A recent notable example is Pakistan’s crucial assistance during the URGENT evacuation of U.S. military and civilians from Afghanistan in August 2021. This support, coupled with Pakistan’s substantial contributions throughout the Afghan war (2001-2021), including the FREE provision of air corridors to nearly 50 coalition countries, has come at an immense human, economic, and opportunity cost to Pakistan, amounting to losses far exceeding tens of trillions of dollars.

Despite these contributions, Pakistan often feels abandoned when in need of American support. A recent instance is the resolution passed in the U.S. House of Representatives, which Pakistan views as unwarranted interference in its internal affairs.

Currently, Pakistan is grappling with an unprecedented economic crisis exacerbated by soaring energy costs and the fallout from the Afghan conflict. This crisis has led to severe hardship and unrest among the populace, posing a significant risk of instability. Given these circumstances, urgent American assistance is crucial. We request a one-time budgetary grant of $5 billion and allowing for Pakistan to import oil and gas from Iran, similar to allowances made for India to import from sanctioned countries like Iran and Russia.

We sincerely hope that the United States government will recognize the gravity of Pakistan’s situation and take appropriate URGENT measures, before it was too late. Doing so would underscore the mutual commitment to our longstanding friendship and dispel any notion that while a country can survive without being friends with America, it cannot endure its friendship.

Thank you for your attention to this urgent matter.

Sincerely,

Syed Nayyar Uddin Ahmad
+92 321 9402157
Lahore, Pakistan.
2 July 2024.