Daily Times

There’s nothing new under the sun, going by the first quarterly approach sent by the Ministry of Finance to the Asian Development Bank. With Pakistan continuing to face persistent economic challenges like high fuel prices, steep exchange rate depreciation, rising poverty, record inflation and aftereffects of the cataclysmic floods of 2022, social vulnerabilities appear to hang heavy in the air. Concerns about skyrocketing prices of almost everything that’s sold on the market are the highlights of the outgoing government’s performance. The country’s external debt has reached alarming levels, putting strain on the economy and limiting its ability to invest in critical sectors such as infrastructure, education, and healthcare. The never-before-seen level of rising food inflation and the spiralling prices of petroleum products, electricity and gas is bound to make the deteriorated diet quality more pronounced. To address this, Pakistan would have to focus on improving its debt management strategies. There’s no denying that. Between broadening the tax base, reducing tax evasion, and implementing a fair and transparent tax system, the upcoming government would have to prioritise comprehensive tax reforms. Only a determined resolve to navigate through the storm can help overcome the fiscal challenges and unleash the true economic potential. In addition to strengthening institutions and establishing transparency, the state would have to invest in sectors like manufacturing, agriculture and services to prioritise job creation. Targeted social safety net programs should be implemented to provide support to vulnerable segments of society. It is imperative for the government to join hands with the private sector, civil society, and international partners to implement sustainable policies that uplift the economy, reduce poverty, and create a prosperous future for all Pakistanis. *