ISLAMABAD, May 11 (INP): IMF’s sponsored budget will result in contraction of the troubled economy and take a toll on the masses struggling to make both ends meet, a business leader said Saturday. The new taxation measures to improve the revenue collection will also hit the business community and the masses, widen the gulf between taxpayers and tax collectors and promote tax evasion, said Shahid Rasheed Butt. He said that the government has not taken any serious step to widen the tax net, therefore, masses will pay the price of their inaction. The budget being finalized under the supervision of the IMF will leave businesses bankrupt, people unemployed while buying power will be compromised, he added. Shahid Rasheed Butt served as President ICCI and Patron ICST said that the government should reverse the policy of squeezing existing taxpayers and try to find new taxpayers otherwise risk expansion in the undocumented economy. The government has taken many steps to widen tax net which remained unsuccessful therefore the strategy should be changed, he demanded. He noted that increased tax collection target desired by the IMF will result in increased harassment which will paralyze economic activities. Erosion of exchange rate, hike in power tariff and other steps have burdened masses by trillions of rupees and they are not ready to face more music.

The governor of central bank while serving as IMF's resident director in Egypt introduced many reforms and played a key role in depreciation of local currency by 48 percent in one year.

The people are worried that he may emulate Egyptian model in Pakistan which pushed poverty from 27.8 percent to 60 percent in that country.

Local currency to remain unstable unless corrupt elements are destabilised and demoralised.