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Tim Hortons Vs the intellectual elite of Pakistan

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Tim Hortons Vs Pakistan's intellectual elite

Most recently, Ms. Iqra Munawar, an associate of the Pakistan Institute of Development Economics (PIDE) wrote an article criticizing the culture of our people, basing it upon the long queues in front of Tim Horton in its opening week.

In her article, and keep in mind that this is written by a member of an elite economic policy institute, Ms. Iqra observes that Pakistanis are not as poor as we might think because they line up in queues when a new food franchise opens. She refers to this as Slavery to Western brands and a colonial syndrome.

She says that on one hand, people are dying due to lack of necessities, while other people are enjoying what may be considered expensive coffee. She goes on to say that the unequal distribution of wealth in the country is the cause of suffering and distribution for the poverty-stricken masses. She says that the rich are getting richer, and the poor are getting poorer, and Tim Horton is to blame.

Not so fast.

Banana Republic, Coffee Republic, Waghera, Waghera

Blaming bad culture, loose morals, and weak ethics have been a staple of economic thinkers from the Left. The scarcity of empiricism in an argument is usually dealt with through excessive emotion and the raising of one strawman after the other. Economists should keep to economics instead of becoming pseudo phycologists parading around in
the guise of an economist.

This country has a history of producing bad economists; economists who want to nationalize private industry, and those who wish to impose the countless taxes on income and wealth. When an economist does their job, the emergent systems are elegant and functional, not falling apart in their complexity.

Pakistan is not in the IMF program not because of the bad spending habits of the so-called elites. This credit goes to the bad fiscal management of the government of Pakistan. And while the government of Pakistan may not have a choice other than to pass on its burdens to its people, Ms. Iqra is under no such obligation.

My line is better than yours

Is a queue on the opening day of Tim Horton’s better, worse or the same as a queue in front of the Pakistan brand Khaddi in every seasonal sale? Or is the queue in front of Tim Horton’s better, worse, or the same as the queue in front of NADRA or the Passport office?

Any economist worth their salt would not equate inequality to poverty. That relationship simply does not exist. While a politically popular point, our economists (at least a vast majority of them) can be seen insisting that this is real economics. This is the same rhetoric that caused the rise and fall of so many socialist nations of the past.

There is no doubt that at present many people are struggling with inflationary pressures. But let us not forget that the source of this inflationary pressure is our expensive imports, and no one is to blame for this than our own government’s misguided economic policies. Many people have lost their jobs during this time, and previously during COVID because their employers have lost their businesses or have had to scale down. As best as I can tell, everyone is getting poorer.

To be fair, Tim Horton’s makes reasonably good coffee, an affordable option for most of the rest of the world. Now even if one puts aside the fact that the Lahore franchise of Tim Horton’s is owned by a Pakistani, it would be great if our economists can shed some light on local alternatives, substitutes, or replacements for it. I mean, we don’t grow coffee in Pakistan, we don’t have any significant domestic brands, and why would we when there is barely any mass culture for drinking it here?

The country is going bankrupt and kids are drinking Coffee

All the criticism over Tim Horton’s issue is basically directed toward youngsters and young adults from middle or upper-middle income families because these were most represented in those legendary queues.

These people are not the capitalist elite of this country. In a country where it is virtually impossible to do business, the only elite possible here is the political elite, and their close cousins, the intellectual elite. And trust me when I say that the halls of PIDE, and other government institutions including Aitchison, and IBA are full of the latter. And guess what, people stand in lines to get access to these institutions as well.

I wonder which line is superior and which is inferior. I wonder in what ways Pakistan’s bureaucratic culture or the culture of the socialist left offers better judgment than the many linguistic, regional, religious, and nationalistic cultures of our motherland.

Such rhetoric is offensive to the people of Pakistan, and outrightly dangerous social/ drawing room talking point.

The writer Syed Ali Ehsan is Program Director at PRIME

PRIME Sales Tax Proposal For Federal Budget 2023-24

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PRIME Sales Tax Proposal For Federal Budget 2023-24

The Policy Research Institute of Market Economy (PRIME) has proposed a sales tax plan for the Federal Budget 2023-24. The proposal aims to address the regressive taxation system that results from keeping sales tax rates on the higher side. The plan suggests that a maximum sales tax rate of 5% should be fixed with no input/output adjustment, which would be ideal for sustainable long-term growth.

The proposal also focuses on broadening the tax base through a simple withholding sales tax (SWHT) regime. The current Eleventh Schedule of the Sales Tax Act, 1990 has ambiguity with regard to active tax payer suppliers, and separate SWHT rates on some supplies and supplier categories are not just justified. PRIME recommends simplifying the SWHT regime to achieve broad, predictable, low-rate taxes.

For more details on the PRIME Sales Tax Proposal for federal Budget 2023-24, please refer to the attached document link

Join PRIME Fellowship: Empowering Classical Liberal Thinkers in Pakistan

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Islamabad Policy Fellowship Program

You want to be a part of PRIME as a libertarian writer and activist? Here is the opportunity for you.

Libertarianism is a broad political philosophy that upholds Liberty as the core value, seeks to minimise state encroachment on the individual liberties, emphasises rule of law, pluralism, cooperation, civil and political rights, free trade, voluntary association and freedom of expression. 

The PRIME Fellowship is a publishing project which is gathering, nurturing and promoting ideas of young writers who are motivated to discover solutions for challenging problems in Pakistan in accordance with the libertarianism philosophy.

As a leading and independent economic think tank PRIME has been advocating for a smaller government, low rate of taxes, and simpler regulations for over 10 years working from Islamabad. As a center of free market ideas and debates, Prime is dedicated to mobilizing younger people towards logical thinking, and empirical study for writing and advocating libertarian solutions.

This PRIME fellowship serves as an umbrella for the entire spectrum of libertarian thinkers residing within Pakistan. Your ideas are welcomed, and your voice is appreciated here. Come and connect with your community. 

Apply by completing the Application Form​

This opportunity is for the professional development of Young people, and candidates within the age of 21 to 29 years of age are eligible to apply.

The Need for a Charter of Economy in Pakistan

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PRIME'S Charter of economy: a blueprint for Prosperous economic future of pakistan

Introduction

In the past, prime ministers and Federal cabinet members under threat of losing popularity mobilize public resources and manipulate economic resources using policy tools. Pre election populist spending stimulates consumer demand, and disproportionately increases import spending, throwing the current account balance into unsustainable deficit levels.
Because the highest import spending of the country is made on petroleum imports, and the government has a near monopoly on these imports, the government runs out of dollars to continue import purchases.
Broad scale controls are activated in favor of slowing down international trade. When imports are choked out, it stresses that portion of the export sector which is in the business of processing imported goods or finishing imported raw materials.
All this occurs in the hope that multilateral financing institutions come to the rescue. Inevitably, the result is expensive petroleum, higher taxes, higher inflation, and shortages of essentials. This throws off existing economic relationships between private players influencing the viability of exchanges in unpredictable ways.
Additionally, political parties have been involved in blocking off civic infrastructure, and greatly affecting the lives and businesses of private citizens. Economic players cannot function optimally when access to economic capital frequently become unavailable.

Charter of Economy

In 2006, Mohtarma Benazir Bhutto and Mian Muhammad Nawaz Sharif signed the charter of democracy. This landmark pre-constitutional agreement between the two largest political parties of Pakistan serves as the foundation upon which parliamentary continuity in Pakistan has been sustained since 2008. With the goal of blocking undemocratic power upheavals in the political establishment, the arrangement became the basis of several constitutional amendments.
We have heard from players of almost all the political parties calling for a similar Charter of Economy. The stated goal of such a charter may be surmised as the elimination of political interests in the deployment of economic controls, and in the distribution of public finances.
Such a charter would have the effect of delinking public finances from the state economy in a meaningful way. It would be able to cultivate budgetary discipline, conservative fiscal policy, stable monetary policy and improve cross border trade prospects.
In pursuit of a stable economic future for Pakistan, the policy research institute of market economy is currently engaging with top legal and public finance expert Dr Ikramul Haq to draft a technical agreement known as the Charter of Economy.
Alongside this effort, PRIME is actively supplementing the charter with a consensus-building exercise between political stakeholders, directly reaching out to the Central Executive Committees of the top three political parties represented in Parliament: PTI, PPP, and PMLN. Through various outreach activities, such as meetings with politicians, newspaper articles, and social media messaging, PRIME is building political capital around the issue, positioning the Charter of Economy as a critical public interest matter for the welfare of all Pakistanis.

Taxation experts propose flat and low-rate taxation system for Pakistan’s Finance Bill 2023

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Taxation experts propose flat and low-rate taxation system for Pakistan’s Finance Bill 2023

The Taxpayers Alliance Pakistan (TPAP), initiative of PRIME, an economic think tank, recently organized a meeting of its fellows to discuss ways to improve Pakistan’s taxation system for the upcoming Finance Bill 2023. Attendees included members of the alliance and field experts who aimed to generate proposals that would simplify tax regulations and reduce the compliance burden on taxpayers. 

(Excited to see the proposal that’s making waves? Simply click here to check it out!)

One of the notable contributions at the meeting came from Mr. Anas Farhan, Vice President of ZTBL. He presented a document and a detailed presentation on the advantages of a flat and low-rate taxation system, which was later commented by Mr. Zeeshan Merchant, Former President of Karachi Tax Bar Association (KTBA). 

Interested in learning more about the meeting details? Access the recording by clicking below

Mr. Farhan’s proposal emphasized the significance of streamlining the tax system and lessening the compliance burden on taxpayers. He argued that a flat and low-rate taxation system would accomplish these objectives while also promoting economic growth and reducing inequality. 

The proposal would eliminate the current complex system of tax brackets and exemptions, reducing the need for expensive tax planning and compliance. 

Overall, Mr. Farhan’s proposal is a crucial contribution to the ongoing debate on tax reform in Pakistan. It provides a well-argued and clear case for a simpler, fairer, and more efficient tax system that could benefit both taxpayers and the wider economy initiative.

Income Tax Proposal for FBR – Budget 2023-24

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Revolutionizing Taxation: PRIME’s Proposal for a Fairer and Simpler Tax System

27, Feb 2023

 

PRIME, an economic think tank, has submitted a proposal to the Federal Board of Revenue (FBR) in Pakistan aimed at reforming the income tax system to promote simplicity, transparency, and compliance. The proposal comes in response to the FBR’s solicitation of ideas for the upcoming Finance Bill 2023. The proposal was developed in consultation with the Taxpayers’ Alliance, a group of tax experts from across Pakistan, as well as Mr. Anas Farhan, the Prime Fellow & Vice President of ZTBL. The aim of the proposed reforms is to eliminate taxes that are unjustified, discriminatory, do not contribute to the national exchequer, and have become redundant. This proposal aims to create a fairer and more efficient tax system in Pakistan that can provide sustainable funding for public expenditures.

PRIME INCOME TAX PROPOSALS FOR BUDGET 2023-24:

[pdf-embedder url=”https://primeinstitute.org/wp-content/uploads/2023/02/PRIME-Income-Tax-Proposals-23-24.pdf” title=”PRIME Income Tax Proposals 23-24″]

Incredible things happen when PRIME Fellows come together! This proposal was born from their expert input. Click here to get the full meeting rundown.