Finance Bill 2009-2010: Looking into the PESTL Crystal Ball

Whilst the global economy is slowing down under the impact of the US subprime crisis, Pakistan has not remained immune from the suffering of the global turmoil. Pakistan's economic growth is declining sharply and according to International Monetary Fund, the economic growth is anticipated to be 2.5%. Liquidations, layoffs and job cuts are expected to continue. Currently, Pakistans economy is facing the threat of a prolonged recession. The situation is not merely for Pakistan only as according to a recent global survey, auditors report on 25% companies was not on going concern basis!
Under this economic scene, the Finance Bill for 2009-2010 is definitely a challenging task. However, intuitive economists are of the view that enhancing Pakistans competitiveness and regenerating the economic momentum should be the ultimate objective of the Finance Bill for 2009-2010.
Such an objective will gain the acceptance of the taxpayers, hence, the Government should ensure that the totality of governments treatment of its subject, its expenditures and its tax, is just. In achieving this, intuitive economists are of the view that the role of the government is to provide a favorable business environment to facilitate business development and free flow of capital, personnel and resources and to strengthen Pakistan as a preferred point of entry for investment flowing into the region.
Although Pakistans tax system is the most modern system after china in the region but its ranking is nowhere in fairness, simplicity or transparency and recent hoax of meeting the targets further deteriorated the principles of equity, certainty, convenience and efficiency [four cannons of Adam Smith] of our tax system.
In Pakistan, every citizen is experiencing the impact brought by the global economic downturn, every taxpayer is questioning the utilization of $35 billion in without proof war on terror while every businessman is questioning the reason of non-exploitation of natural resources in Sind, NWFP and Balochistan.
With the sluggish condition, every citizen considers that the government should play a leading role to stimulate the economy by tax and other relieves, promote a caring society, and encourage financially responsible behaviors through the tax incentives. Whilst I share the principle of fiscal prudence, every citizen considers that a package of measure is required to help relieve the citizens of Pakistan. This article is a crystal ball for the Finance Bill, 2009.