No Loans to Pakistan

The International Monetary Fund (IMF) has just approved another loan to Pakistan. This is a $6.7bn (£4.3bn) loan on top of the nearly $5bn Pakistan already owes the IMF from earlier loans. This tacit acceptance of nonpayment is, of course, is a common practice of the IMF. One of the biggest problems in Pakistan is the almost nonexistent tax-collection apparatus that exists in that country. Strangely enough, it can be argued that this is partly due to Islam. More precisely, it's because of the sharia law of zakat. Muslims already have a 'tax policy' which is completely separate from the government/state in which all adult Muslim males must pay 2.5% of their wealth to the poor or needy (i.e., alms). The problem is that zakat is a charitable gesture and has nothing at all to do with either the state or even with domestic/ private economies. (It is collected in a 'decentralised' manner.) In addition, it is not an income tax and is only collected once a year. That means that if...(Read Full Article)