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economic emancipation

The Economic Year in Review

A populist Government is always torn between two widely dissimilar choices, whether to go the popular route in avoiding the levying of taxes or to impose such taxation as may be necessary to offset necessary development. Ms Benazir’s Government chose the politically pragmatic route of avoiding taxes in fiscal 1989-90 and almost got away with it, one dare says that all conditions remaining equal, the Federal Government would not have had to resort to increasing fuel prices in the last quarter of the Budget year. The gamble did not come off, a combination of bad financial discipline, worsening world-wide economic situation, internal circumstances particularly strife affecting the port city of Karachi and the increasing threat perception from India because of the escalating situation inside Indian Held Kashmir (IHK) have combined to put all plans into an economic flat spin. The Government, therefore, resorted to a last gap fuel-hike but luckily for them the month of Ramzan timing coupled with the present apathy of the masses towards widespread protest, force multiplied by mass concern at the immediate Indian threat, has paid off.

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