Islamabad, Dr. Muhammad Hanif Mughal, Chairman of Pakistan Tehreek-e-Shadbad, emphasized the urgent need for the incoming government to focus on economic development and poverty reduction. In a statement released on Monday, Dr. Mughal highlighted the critical financial state of the country, marked by a high inflation rate, significant budget deficit, and increasing poverty. He pointed out the extravagance and inefficient spending that the country can no longer afford, urging for immediate action to sell loss-making state-run companies and reduce the wastage of resources.
According to Pakistan Economy Watch, Dr. Mughal criticized the current financial management practices, including the distribution of federal income under the 7th National Finance Commission (NFC) Award, which he believes is weakening the federation by allocating a disproportionate share to the provinces. This, he argues, hampers the federal government’s ability to service loans effectively. The chairman further noted the reluctance of provinces to collect taxes while being keen to spend, exacerbating the fiscal challenges faced by the country.
With the economy in a severe crisis, Dr. Mughal underscored the necessity of prioritizing the service of the public over lavish expenditures. He highlighted the pressing issues of high energy costs impacting production and exports, dwindling incomes, and the inability of the government to cover interest payments on loans. Additionally, he raised concerns about the annual birth rate exceeding the capacity of the country to provide adequate health, education, and other essential services, stressing the importance of reforms across all sectors to secure the country’s future.
Dr. Mughal’s call to action includes a reevaluation of the NFC award, suggesting a reduction in the provinces’ share to strengthen the federation’s financial health. He criticized the failure of public sector companies and the misuse of funds by politicians and the bureaucracy, calling for a shift towards more sustainable and merit-based governance practices.
The statement from Pakistan Economy Watch serves as a stark reminder of the economic challenges facing the country and the urgent need for comprehensive reforms to ensure sustainable growth and improve the living conditions of its citizens.