LAHORE: Former finance minister Miftah Ismail on Saturday said Pakistan’s economy is in a precarious situation, adding that even if prudent policies are taken, it will take the country a year or two to steer out of the ongoing mess.
“If we move prudently, it will take another year or two to come out of the mess,” the former minister said.
He was addressing an event ‘Emerging Pakistan’ at the Government College University, Lahore. The event was also addressed by former prime minister Shahid Khaqan Abbasi, Mustafa Nawaz Khokhar, Lashkar Raisani and Nadeem Babar.
Miftah said the governance in Pakistan was at its worst, adding that the country needs a surgery. “We cannot save at the same time both the system and the state.”
He said this year the government would spend Rs6,000 billion on debt servicing, adding that it has to pay back foreign debt of $20 to $25 billion every year. “Pakistan owes over $100 billion foreign debt. No one from outside is prepared to fund Pakistan and local banks are also short of cash,” he added.
Miftah said during his tenure as finance minister, he tried his best to save the country from default, adding that the threat of default would be there next year as well. “We in Pakistan could do nothing because of bad governance.”
The former finance minister said the country cannot survive on exports of $30 billion, adding that the government, despite its best efforts, had failed to increase exports. “Foreign investors are not coming to Pakistan.”
He said the present government sincerely tried to reduce expenditure but failed, adding that the deficit increased during the tenure of Imran Khan.
He said out of 2.2 million shops, only 30,000 pay taxes, adding that when he imposed tax on all shops, he faced immense political pressure to withdraw it.
Meanwhile, Mustafa Nawaz Khokhar said the situation in Pakistan was not good as this year over one million highly skilled professionals such as doctors, engineers and IT experts had left the country. “People of remote areas, particularly those living in Balochistan, are deprived of their rights,” he added.
PMLN leader Shahid Khaqan Abbasi said all the stakeholders have failed in their efforts to steer the country out of ongoing crises, adding that the Supreme Court’s verdicts have created confusion. He said the reforms in bureaucracy must be given priority as the NAB fear has made it redundant.
He deplored that Rs84 billion were spent on distributing free flour, which did not benefit the poor.