Islamabad: Former Finance Minister Miftah Ismail said that Pakistan’s growth model only facilitates top one percent elite of country while making lives of lower and middle income groups miserable. “Government has given Rs 570 billion worth of loans to them at 1 percent interest rate to import machinery, however, they also ordered consumables for themselves and their families from abroad, thus inflating import bill,” he said while speaking at 37th Corporate Excellence Awards organised by Management Association of Pakistan (MAP) at a local hotel here.

“When economy heats up, it is lower and middle income groups that face brunt as companies lay off employees.” Miftah estimates losses at $ 18.5 billion Pakistan’s growth model was “upside down as it gives protection to manufacturers at cost of value addition”. He said that Pakistan should not have lofty import bill of $ 80 billion with just $ 30 billion revenue in exports and $ 30 billion remittances. “Every government leaves depleted foreign exchange reserves at end of its term,” he lamented. Citing that country failed to establish any significant brand in exports, he stressed need for country to turn export-oriented.

Besides, he emphasised that country should focus on development of its agriculture sector because “It is quite unfortunate that Pakistan is importing $ 2 billion worth of cotton, $ 1 billion worth of pulses and $ 4.5 billion worth of edible oil.” “We are importing pulses from countries like Ethiopia, which reflects dismal state of domestic agricultural sector,” he said, adding that this whole situation was leading to back-to-back budget deficits. When current account posts a deficit, government has to finance it through loans, Miftah pointed out. “We should learn to live within our means.

If we cannot export, then we should not import in huge amounts,” he opined. “Our private sector does not have money required to finance deficit and our provinces are not helping as well.” He added that provinces had increased their payrolls by 400 percent in last few years and many officers were earning 50 percent higher salaries than federal government officials. He also criticised Pakistan’s education system, citing that 10 percent of world’s illiterate children are from Pakistan. “India has world-class universities which helped it grow by leaps and bounds in technology and IT,” he said.

Published in The Daily National Courier, October, 04 2022

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