'Reforms key to economic stability'

Rana Ihsaan Afzal, the Coordinator to the Prime Minister on Implementation and Monitoring, said on Tuesday that the current government is committed to implementing significant fiscal reforms to ensure the completion of Pakistan's 21st International Monetary Fund (IMF) programme, which is the last lending facility the country has opted for.

Afzal made these remarks during a session titled 'Debt, Debt Justice and Development' on the second day of the Sustainable Development Conference, organised by the Sustainable Development Policy Institute (SDPI) in collaboration with the Ministry of Climate Change.

Afzal emphasised that Pakistan's consumption-driven economy has contributed to the country's growing external debt. However, he noted that the government had already implemented stringent revenue measures, which would prevent any further tax increases in the upcoming budget.

Muttahida Qaumi Movement-Pakistan (MQM-P) leader and Member of National Assembly (MNA) Dr Farooq Sattar criticised the political landscape, stating that a state of denial among both the government and opposition was preventing policymakers from taking corrective actions for economic revival. He argued that Pakistan's economy was relying on short-term, symptomatic solutions rather than addressing the root causes of its fiscal challenges.

Dr Sajid Amin Javed, Deputy Executive Director at SDPI, observed that discussions about the country's debt often focused on "staggering numbers and statistics," without addressing the real issue—how the masses bear the burden of increased taxes and revenue collection decisions, while governments avoid paying taxes.

Mohsin Mushtaq Chandna, Director General (Debt) at the Finance Division, pointed out that 2022 was a particularly difficult year for developing economies like Pakistan, citing rising inflation and the additional economic strain caused by climate disasters.