Islamabad, Dr. Muhammad Hanif Mughal, the Chairman of Pakistan Tehreek-e-Shadbad, emphasized the unsustainable nature of managing an economy through loans, stating that a country’s reliance on debt signals a grim future. He advocated for a new agreement with the International Monetary Fund (IMF) as crucial for the nation’s economic stability.
According to Pakistan Tehreek-e-Shadbad, Dr. Mughal highlighted the necessity of securing another loan from the IMF to address the ongoing economic challenges facing Pakistan. He stressed the importance of abandoning extravagant expenditures and making responsible financial decisions to leverage IMF support effectively.
Dr. Mughal criticized the politicization of the finance ministry, suggesting that international lenders prefer non-political figures for the role, believing such appointments could lead to economic improvements. He pointed out that although the IMF assistance during Shahbaz Sharif’s 16-month tenure prevented a default, it came at a significant cost to the populace, particularly shielding the elite from the stringent conditions imposed by the IMF.
Highlighting the inflationary risks of potential bankruptcy, Mughal reflected on Pakistan’s longstanding struggle with debt, noting that the country now relies on loans for basic expenditures like salaries. He criticized the previous government under Imran Khan for accumulating unprecedented levels of debt without tangible benefits to the economy.
Furthermore, Dr. Mughal supported the IMF’s recommendation for a thorough review and rationalization of the tax incentive regimes, advocating for a broader tax base coupled with lower rates to ensure consistency and fairness in the tax system.
The discussion also touched on the contentious issue of privatizing state-owned enterprises like PIA, where Dr. Mughal lamented the resistance from the PPP to privatization efforts, arguing that their proposal for public-private partnerships was impractical. He warned that failure to proceed with necessary reforms could jeopardize Pakistan’s agreement with the IMF, underscoring the critical nature of these negotiations for the country’s economic future.