The Institute of Policy Studies at the National University of Science and Technology (NUST) has put forward a comprehensive solution to address Pakistan's economic challenges.
Highlighting the urgency of the situation, the institute emphasized the immediate need for a reduction in the country's high interest rates, calling for strong political commitment from both civil and military leadership.
According to the NUST report, Pakistan's economy is grappling with five major issues, including high fiscal and current account deficits, mounting debt, sluggish economic growth, and persistently high inflation rates. The report underscores the significance of addressing these challenges promptly.
Specifically, the institute suggests an immediate reduction in the current policy rate, which stands at 22 percent. It estimates substantial annual savings of billions of rupees with even a modest one percent reduction. Moreover, NUST proposes consolidating the federal development budget for the next two years and refraining from initiating new infrastructure projects.
Additionally, the report recommends expediting the privatization of state-owned enterprises such as Pakistan Steel Mills and Pakistan International Airlines (PIA) to mitigate losses. It advocates for reforms in social welfare programs like the Benazir Income Support Program (BISP), suggesting a reduction in the number of beneficiaries and fixed budget allocation.
Furthermore, NUST stresses the importance of sharing financial responsibilities with provincial governments, enhancing revenue generation, and implementing a point of sale system to streamline taxation, including sales tax.
In terms of human resource management, the institute suggests appointing highly qualified professionals to key ministries such as Finance, Planning, Federal Board of Revenue (FBR), Energy, Commerce, and Industry. It also recommends the formation of a specialized team to boost exports, recognizing the critical role of friendly nations in Pakistan's economic recovery and stability.
The comprehensive proposal by NUST underscores the need for concerted efforts and strategic reforms to navigate Pakistan through its economic challenges and pave the way for sustainable growth and development.
