The growing concern among the analysts is that the incumbent
government will accept all the conceivable conditions of the International
Monetary Fund (IMF) to get the withheld tranche released, amounting to roughly
one billion US dollar.
The analysts have this perception based on the fact that meeting
the IMF conditions will be the headache of next elected government.
They also have the consensus that in the next budget the
existing tax rates will be increased and new taxes will be introduced. On top
of that super tax will also be introduced.
Along with this, subsidies will be withdrawn, levies
applicable on energy products will be increased.
The government will not be able to boost exports or contain
imports.
The quantum of informal import ill increase.
The quantum of PSDP will also be reduced.
The bottom line is, GDP growth will remain below one percent
or negative.
The most alarming point is that the government will not be
able to offer any income support program, poor will get poorer and rich will
get richer.
