Former finance minister Miftah Ismail expressed concerns about the current economic emergency in Pakistan, stating that the government is not fully aware of its true extent. Speaking at an event in Karachi, Ismail explained that Pakistan has been facing a persistent crisis, but previous economic issues were successfully managed, leading to the current situation being treated lightly.
One of the major problems highlighted by Ismail is the lack of sufficient revenue to cover interest payments on previous loans. He emphasized that Pakistan is borrowing more money to pay off the interest on old loans, which makes the country’s debt unsustainable.
Ismail, who successfully negotiated reviews with the International Monetary Fund (IMF) during his tenure, revealed that Pakistan’s net tax revenue is inadequate to meet interest payment obligations.
Ismail pointed out that the root of Pakistan’s economic problems lies in the successive leaderships of the country, rather than solely blaming the IMF. He acknowledged that inflation has risen globally, but it has been particularly severe in Pakistan compared to neighboring countries like India and Bangladesh. According to him, the inflationary pressures cannot be attributed solely to the global rise in prices, suggesting that policy-making errors have contributed to the situation.
Taking responsibility for the situation, Ismail criticized the leadership of the country, including himself, labeling it as the worst in the world. He has been advocating for significant reforms in Pakistan, including the privatization of loss-making state-owned entities, reforms in the education sector, and population control measures.
Ismail’s remarks come at a time when Pakistan is in discussions with the IMF regarding the revival of its stalled bailout program. The government is actively seeking solutions to address the economic challenges and pave the way for sustainable growth and stability.
