Dr Hafiz Pasha, in an Aaj Television programme, expressed serious reservations over achieving the 3.5 percent budgeted growth rate for the current year. He highlighted issues such as high energy prices, input cost increase, and restrictions on raw material imports affecting the manufacturing sector's growth, leading to a negative impact on the overall Gross Domestic Product growth.
The release of government data showing a negative growth in the Large Scale Manufacturing sector and the rise in private sector credit have further fueled concerns over the country's economic prospects. Dr Pasha also pointed out the challenges faced due to high energy costs compared to regional competitors, which continue to constrain exports.
While the International Monetary Fund has allowed a reduction in electricity rates to boost demand, concerns remain about the effectiveness of this measure. The government's efforts to discourage imports aim to reduce dollar outflows and achieve a current account surplus, but the success of these policies remains uncertain.
Despite optimistic projections by cabinet members and the Monetary Policy Statement, discrepancies between claimed growth in key sectors and actual data raise doubts about the economic outlook. The Chairman of the Federal Board of Revenue highlighted the challenge of meeting unrealistic revenue targets and emphasized the need for tax compliance.
As Pakistan faces economic challenges, there is a growing call for fiscal responsibility and sustainable financial practices to avoid excessive borrowing. Drastic measures such as voluntary sacrifices from government beneficiaries have been suggested to reduce the burden on taxpayers and lessen reliance on foreign loans.
