Islamabad : Coordinator to the Prime Minister on Commerce Rana Ihsaan Afzal has stressed the need for deep structural reforms to put Pakistan's economy on the path of sustainable growth.
Mr Afzal was speaking at the relaunch of “Sustainable Policy Economic Bulletin: Budgeting the Unbudgeted” here at Sustainable Development Policy Institute (SDPI).
The government has corrected key economic imbalances while pursuing trade liberalisation, tariff rationalisation and digital transformation, Mr Afzal said, adding that meaningful economic reforms require informed public debate based on facts rather than political narratives and misconceptions. He said despite challenging economic and geopolitical circumstances, the government initiated its reforms agenda including renegotiation of Independent Power Producers (IPP) agreements, rationalisation of electricity tariffs, privatisation of Pakistan International Airlines (PIA), reduction in customs tariffs and implementation of a comprehensive tariff policy aimed at improving industrial competitiveness.
The PM’s coordinator said the government reduced tariffs on raw materials and semi-finished goods to enhance exports and industrial productivity and about Rs400 billion in tariffs would be phased out under the new tariff policy to strengthen Pakistan's manufacturing sector. He expressed confidence that the ongoing IMF programme would be completed successfully, unlike many previous arrangements.
He acknowledged that expenditure-side restructuring remained one of Pakistan's biggest challenges, particularly in the power sector, state-owned enterprises and subsidies. He said debates focused excessively on the size of the cabinet or ministries whereas the real structural issues were related to energy, public spending and institutional efficiency required greater public attention.
He said that growth requires coordinated efforts by the federation and provinces, stronger local governments and greater ownership of development priorities at the provincial and district levels. He noted that improving governance, strengthening institutional capacity and aligning national and provincial economic policies were essential to boosting exports, attracting investment and creating employment.
He said reforms should be evaluated on facts rather than political rhetoric. He sought constructive public debate to build wider support for long-term reforms necessary for Pakistan's economic stability and growth.
Senior Economist Dr Khaqan Hassan Najeeb, called for comprehensive expenditure-side reforms, restructuring of National Finance Commission (NFC) framework, greater fiscal decentralisation and long-term institutional reforms to ensure sustainable economic growth.
He urged policymakers to move beyond short-term fiscal measures and undertake comprehensive structural reforms to place Pakistan's economy on a sustainable growth trajectory.
