Deputy Prime Minister and Finance Minister Ishaq Dar has described the International Monetary Fund (IMF) programme as anti-growth stating that Pakistan’s current economic framework requires fundamental reforms to achieve sustainable development.
Addressing the Pakistan Policy Dialogue seminar, Dar said that with a population growth rate of 2.5 percent, a GDP growth rate of 2.6 percent effectively amounts to zero growth. He stressed that for stable and sustained economic progress, the country must move forward with strong leadership, effective delivery, and a focus on achievement.
He emphasized that all loss-making state-owned enterprises, including power distribution companies (DISCOs), must be privatized. Highlighting Pakistan’s untapped potential, Dar said the country possesses mineral resources worth an estimated 8 trillion dollars.
The deputy prime minister underlined that continuity in economic policies is essential for long-term growth. He noted that Pakistan currently carries 100 billion dollars in external debt along with 30 billion dollars in liabilities. To keep the current account under control, he said Pakistan must increase exports by 10 billion dollars, remittances by 10 billion dollars, and services exports by another 10 billion dollars.
Dar said Pakistan’s diplomatic engagement should directly serve national economic interests. He recalled that three years ago Pakistan was facing diplomatic isolation, but by 2025 the country has achieved historic successes and is receiving global recognition. He added that Pakistan has now started exporting JF-17 fighter jets.
Referring to infrastructure development, he said that under CPEC Phase-II, the Karakoram Highway is being linked with the Diamer-Bhasha Dam, with work set to begin soon. He also revealed that Pakistan has reached a deal with the United States at a 19 percent tariff rate, and progress is expected soon on restoring GSP-Plus status, with support from Germany and Hungary.
Dar further stated that an agreement between Pakistan and Saudi Arabia is expected to be finalized in September, under which Pakistan will be responsible for the protection of the holy sites of Haramain Sharifain. He added that Pakistan and Bangladesh are restoring relations after a gap of 12 years.
Speaking on privatization, Dar claimed that the privatization of Pakistan International Airlines (PIA) has been successfully completed, saying the broader privatization programme will help restore investor confidence.
