The positive results of the government’s economic reforms have proven false every propaganda made in this regard.
Macroeconomic stability and the IMF program are being criticized by various quarters, while poverty, financial issues, decline of industries, tax burden on the poor, and government wasteful spending are being attributed to the destruction of the economy.
Inflation and public purchasing power, debt crisis and economic reforms are being called futile in the country, while the reality is the opposite. The government has gone beyond the terms of the IMF program and implemented comprehensive reforms, including restructuring the energy sector, expanding the tax base and anti-corruption efforts.
Subsidy reforms were inevitable in the country, but the government increased social security through the Benazir Income Support Program, which was increased by 25 percent. Experts say that the reason for the increase in poverty is not the IMF program but the global economic crisis such as the Corona epidemic and other factors that have affected the whole world. Pakistan’s industrial sector was affected by global issues.
To overcome the crisis, the government took energy price adjustments and new measures. Similarly, efforts are underway to revive the industry through SIFC. These measures are promoting investment in agriculture, IT and other sectors.
The government has introduced progressive measures such as higher income tax on the elite and windfall tax on banks, and non-interest expenditure has been increased by 32% to reduce the burden on the poor. Similarly, the government has corrected excessive expenditure, such as increasing salaries and pensions, to prevent brain drain.
As a result of government measures, inflation has decreased due to tight monetary policy and falling global prices, which is a sign of economic stability. The stability of the rupee and the independence of the State Bank have played an important role in price stability.
The government has also taken steps to control circular debt through tariff rationalization in the energy sector, privatization of government institutions and improvement in debt management. These reforms have improved Pakistan’s debt situation and taken important steps to address the crisis.
The government has tried to put Pakistan’s economy on the path of stability through reforms and measures, however, it takes time to achieve the results of the steps taken by the government to improve the economy.
