Budget 2015-16
On 5th June 2015, the Finance Minister of the Raheel-Nawaz regime presented a budget for the 2015-16 financial year. As is previous budgets, this year’s budget neglects the people by fulfilling the requirements of the colonialists, headed by America, through blind compliance with IMF dictates. The Finance Minister, in accordance with his Letter of Intent to the IMF of 11th May 2015, further burdened the people and introduced almost 250 billion rupees worth of new taxes, withdrawing tax subsidies and raising taxation on various items. This is in order to secure a 506 million dollar installment of a 6.8 billion dollar IMF loan. However, even after this huge rise in taxation, this budget again has a large budget deficit, of some 328 billion rupees. This shortfall will be financed by taking even more foreign and domestic loans, which further increases the huge total debt on Pakistan. In this budget, 1596 billion rupees are already allocated for debt servicing, which is almost 37 percent of the total revenue of 4314 billion rupees. So no matter how much tax is raised, it will never be sufficient to pay previous loans and their interest. More loans will be arranged and more taxes will be imposed on the people, to payback these loans. Therefore, this vicious cycle of debt will continue, burying the people in even more poverty and hardship.
In reality, the capitalist system, whether enforced by democracy or dictatorship, will never take care of the needs of the common people. It will only produce economic policies to increase the wealth of the colonialists, their agent rulers and their cronies continuously. Hence, assets that could generate large revenues for the society are delivered to private entities, local and foreign, in the name of privatization. Therefore on IMF dictates, valuable assets of Pakistan are sold to large capitalist interests i.e., the regime is selling a golden goose for a cheap price, which could generate great wealth for looking after the people’s affairs.
The people of Pakistan will never be able to get out of this vicious cycle, unless the Islamic economic system is implemented by the Khilafah. Islam declared large natural resources, such as oil, gas and minerals, as public property for looking after the affairs of the people. RasulAllah ﷺ said,
«الْمُسْلِمُونَ شُرَكَاءُ فِي ثَلَاثٍ الْمَاءِ وَالْكَلَإِ وَالنَّارِ»
“The Muslims are partners in three things, waters, feeding pastures and fire.” (Ahmad).
Also if the revenue from public property, Zakat on trade and life stock, Kharaaj on agricultural land and Usher agricultural produce are not enough for expenditure on that which Islam has stipulated, even then Islam forbids the ruler to impose taxes indiscriminately. Unlike the IMF policy, in Islam revenue generation takes into consideration the ability of each and every individual to fulfill their basic needs of food, clothing and shelter. Therefore, when the Khilafah does tax, it does not penalize the poor and under-privileged.
Hizb ut-Tahrir urges the Muslims of Pakistan to abandon any hope in Democracy or dictatorship because it is the guarantor of our destruction and misery, regardless of who comes to rule within it. So join hands with Hizb ut-Tahrir and work to abolish democracy and secure the return of the Khilafah.
Shahzad Shaikh
Deputy to the Spokesman of Hizb ut-Tahrir in Wilayah Pakistan
Saturday, 19th Sha’ban 1436 AH
06/06/2015 CE
No: PR15045