Daily Times

Is this it? Another round of IMF talks, another budget looming, and the same old questions: can we actually fix this economy, or are we just rearranging deck chairs on the Titanic? The recent progress touted by the IMF feels more like a ticking clock than a victory lap.

The reliance on friendly nation deposits, contingent on adherence to the IMF program, highlights Pakistan’s precarious financial position. Now we’re rushing the budget in a move that reeks of desperation.

The “policy discussions,” fancy talk for immediate fixes, are all about plugging holes. But what about the real problems? The FBR is always falling short, and the tax burden keeps hitting the same people – the ones who can least afford it. The unresolved issues surrounding real estate and farm income taxes reveal a lack of commitment to broadening the tax base.

Our government’s obsession with quick cash, exemplified by the increased petroleum levy, demonstrates a short-sighted approach. Short-term gain, long-term pain.

The Prime Minister’s announcement of a possible electricity tariff reduction, linked to the increased levy, seems like trying to extinguish a fire with a squirt gun. The unresolved circular debt issue in the energy sector and stalled negotiations with Chinese IPPs highlight the government’s inability to tackle structural problems.

The slow pace of pledged structural reforms remains a critical gap. The IMF’s “wait-and-see” attitude suggests a lack of confidence in Pakistan’s commitment to long-term change. To be frank, they have very good reason. The burden continues to fall heavily on the public through increased taxes and reduced services, while elite sector spending remains unchecked.

We need to stop playing games. Significant reforms are essential for achieving meaningful change. This includes taxing the wealthy, privatizing loss-making state-owned enterprises, and managing expenditures wisely. The government must also have a clear strategy for promoting regional trade and incorporating climate resilience into its plans. Without these measures, Pakistan risks continuing a cycle of dependency and instability.

The early budget presentation offers an opportunity to demonstrate this commitment, but the proof will still be in the pudding. More of the same banter and we are doomed to repeat the vicious cycle.

Unfortunately, this time around, the economy won’t be the only thing that gets broken. *