Islamabad, Dr. Muhammad Hanif Mughal, Chairman of Pakistan Tehreek-e-Shadbad, emphasized the critical need for Pakistan to secure a new agreement with the International Monetary Fund (IMF) to ensure economic stability. During a statement on Monday, Dr. Mughal articulated the unsustainable nature of relying on debt to fuel the economy and urged politicians to back a new deal with the IMF as a vital step toward rectifying Pakistan’s fiscal woes.

According to Pakistan Tehreek-e-Shadbad, Dr. Mughal outlined the precarious situation of an economy overly dependent on loans, highlighting the necessity for IMF support to implement essential economic reforms. He critiqued past administrations for excessive borrowing and inefficient utilization of funds, indicating that such practices have led the country to a point where it depends on external financial assistance even for operational expenditures like paying salaries.

The Chairman pointed to the past government’s success in averting default through IMF collaboration but noted the heavy toll such emergency measures have exacted on the populace, with heightened inflation impacting the less affluent segments of society disproportionately. Dr. Mughal also commented on the need for tax system reform as advised by the IMF, advocating for a more extensive tax base coupled with lower rates to foster consistent revenue streams.

The discussion extended to privatization debates, where Dr. Mughal referenced opposition from the PPP to proposals favored by the IMF and other economic analysts for restructuring key state-owned enterprises. He warned that failure to pursue necessary reforms might jeopardize future agreements with the IMF, underscoring the broader implications for Pakistan’s economic stability and international relations.

Dr. Mughal’s remarks reflect deep concern over Pakistan’s financial trajectory and a call to action for pragmatic policies to secure a more sustainable economic future.