- Major objection of IMF is on tax amnesty: Hafiz Pasha
- Food inflation is expected to 53%: Hafeez Pasha
- We are well aware of the forces in power structure preventing reforms: Dr. Aisha Gaus Pasha
- Welfare measures have to be taken along with macroeconomic policy: Dr. Aisha Gaus Pasha
ISLAMABAD, Pakistan: The former Finance Minister Dr. Hafiz Pasha has said that Pakistan’s foreign exchange reserves are just over US$ 9 billion much less than the Country’s requirement while Pakistan’s biggest problem remains its multilateral debt.
In his remarks at the Launching Ceremony of his book on “Leading Issues in the Economy of Pakistan” organized by Germany’s leading political think-tank Friedrich Ebert Stiftung (FES), Hafiz Pasha said that Pakistan’s problem will not be solved without large foreign exchange deposits from friendly countries.
The Country Director of FES Pakistan Dr. Niels Hegewisch and the State Minister for Finance and Revenue Dr. Aisha Ghaus Pasha also attended the ceremony.
Dr. Hafiz Pasha highlighted the major challenges faced by the Pakistani economy.
According to his study, repayment of loans is the biggest challenge for Pakistan. Most of the loans were obtained from the same sources. The second major challenge is to meet the conditions of the IMF, according to Dr. Hafiz Pasha. The major objection of IMF is on tax amnesty.
The former finance minister further explained the reasons of the looming condition of the economy. He said that wrong economic policies are pushing the economy towards default. He showed concern that development projects worth Rs 9,000 billion could not be completed in decades. These projects will not be completed even in the next 18 years.
Dr. Hafiz Pasha said that the Public Sector Development Programme (PSDP) used to be 3% of GDP in the past and now it is less than 1 percent. Pakistan is ninth among 11 countries in the world that have come closer to default.
The former minister presented the glaring facts about increasing inflation and unemployment in Pakistan.
“There is a risk of food inflation going up to 53%,” said Hafiz Pasha.
The main reason for this is the relentless increase in the value of the dollar. 10 to 11 percent more people became unemployed due to floods. The number of unemployed people is around 2.5 million. 1.1 million people were already unemployed.”
Hafiz Pasha further said that two and a half million people are living below the poverty line. The government needs Rs 2,400 billion to control this poverty. Salaries and pensions will have to be increased by Rs 600 billion next years to protect against inflation.
The government will have to revise the trade agreements, he said adding that the balance of Pakistan-China trade is 90% in favor of China.
The State Minister Dr. Aisha Ghaus Pasha also expressed her views on the occasion, saying that we are well aware of the forces in power structure preventing reforms. She further said that even on the 100th anniversary, there will be a hue and cry about the problems of Pakistan.
The state minister emphasized that Pakistan has to increase its economic growth rate. For this purpose, Pakistan has to decide on suitable measures.
Dr. Aisha Gaus Pasha concluded with the remarks that welfare measures have to be taken along with macroeconomic policy for improving Pakistan’s economy.
The event was attended by senior political leaders, economists, civil society and media.
