Ex-PM calls for overhaul instead of new taxes

Abbasi says elite-driven system blocking growth

LAHORE:

Former prime minister Shahid Khaqan Abbasi on Thursday called for sweeping structural reforms in Pakistan's economy, arguing that the country remains trapped in a decades-old taxation mindset, rising debt cycles and elite-driven governance that continued to hinder sustainable growth.

Speaking at a budget seminar at a private university, he said Pakistan's fiscal approach today remained fundamentally similar to that of the early 1990s, relying heavily on new taxes to bridge budget deficits rather than expanding the economic base.

"In 1990, when our government came into power, attempts were made at reforms," he said, recalling that even then, committees would sit for hours and impose taxes on a handful of items to meet fiscal gaps. "We are still doing the same today."

He said he had remained involved in budget-making processes for nearly four decades, but the structural approach had not meaningfully changed.

Abbasi said Pakistan must now decide its direction, adding that wars and repeated external engagements had not translated into economic stability.

He said the country's priority should be improving growth, but lamented that every attempt to boost growth was followed by a decline in investment.

He stressed the need for deep reforms in governance and fiscal management, arguing that unnecessary expenditures, including bureaucratic costs and official privileges, reflected an entrenched mindset that must be changed.