‘Common man will not be overburdened to meet IMF conditions’

Minister for Planning, Development and Special Initiatives Ahsan Iqbal Thursday said that the government would meet the conditions set by the International Monetary Fund (IMF) to complete the programme, but common man would not be affected by the decisions.

He said the IMF agreement was hanging in the balance due to which the government had to negotiate with the fund. The previous government, he said had recklessly agreed upon the programme, therefore the current government has no option but to continue it.

“We have to do lot of adjustments, but we will take decisions in the larger interests of the state,” he said and hastened to add that “we will try to put minimum burden on the poor”.

He was addressing at an event here at the Pakistan Institute of Development Economics (PIDE).

The minister said Pakistan’s economy was in shattered condition when the current government took over and keeping in view the short available time, it decided to take short term measures to turnaround the economy. Ahsan Iqbal stressed the need for mobilsing all available resources to increase productivity and exports of the country so as to get rid of foreign loans on permanent basis.

“Pakistan’s productivity capacity is very low as compared to the standard average”, he said adding that in agriculture sector alone, the country could earn billions of dollars by taking measures to increase the crops’ yield per acre.

For instance, he said the per acre wheat production in Pakistan can be increased by up to 80 per cent by improving on-farm management. Similarly, he said, our industrial production possess numerous inefficiencies due to which we are not competitive with the world.

The biggest challenge in 75 years, he said is that Pakistan’s productivity capacity could not be integrated with the global markets.

Ahsan Iqbal pointed out that export-led growth is important to resolve the balance of payment issues, therefore he stressed the need to do all measures to earn maximum foreign exchange reserves.

“We have to do resource mobilisation and also have to increase tax to GDP ratio up to the global average of over 18 per cent which is only at 09 per cent in Pakistan”.

Published in The Express Tribune, January 20^th, 2023.