The cost of relief

ALTHOUGH bound by the IMF’s stern conditions, the federal government appears desperate to provide tax relief to middle-class salaried individuals as well as businesses, especially the real estate lobby, in the upcoming budget. This desire seems to have grown stronger in the aftermath of Pakistan’s recent tactical military win against India as the ruling party hopes to turn the ‘feel-good factor’ in the country into wider political support for itself. The question, however, remains: can the government secure ‘concessions’ from the multilateral lender to implement its ‘relief plans’ to win over middle-class voters? What we have seen is that the government was compelled to delay the announcement of its budget by more than a week to June 10 when the IMF mission left the country after inconclusive policy discussions on Islamabad’s budget proposals last month.