Karachi: President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi
Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI
and former provincial minister, Mian Zahid Hussain on Monday said rampant tax evasion
is resulting in poverty, unemployment and illiteracy in the country.
Loans and grants can never be a substitute to the economic activity which is imperative
for the national development, he said.
Mian Zahid Hussain said that regressive taxation regime introduced by many countries
has killed the economy activity keeping the dependent on loans and charity.
Talking to the business community, the veteran business leader said that no amount of
borrowing or charity can help a country as economic activity is the only solution to the
The former minister noted that reduced economic activity triggers poverty, illiteracy and
child labour putting future of the country at stake.
He said that our economic situation is worst in South Asia; inflation is highest in the
region which increasing taxes are opposing economic progress. Giving an example, he
said that many African nations have imposed thirty percent income tax, twenty percent
value added tax and 45 to 50 percent duties on imports which has made local and foreign
investments impossible despite very cheap labour.
Mian Zahid Hussain noted that majority of African and other poor nations have imposed
these taxes to please institutions like IMF which has reduced their chance of development
Policies like difficult rules and regulations in the name of reforms, penalising masses to
improve GDP and choosing economic depression have failed in many countries therefore
we should not repeat them, he opined.
Policymakers must learn a lesson from other countries because our economy is still left
with some energy which is not favoured by some influential countries.