Ishaq Dar terms fiscal deficit 'worst crisis'

Pakistan Muslim League-Nawaz senior leader Senator Ishaq Dar Saturday described fiscal deficit as "worst crisis" and added that borrowing money for meeting current expenditures is unaffordable. While addressing the concluding session of a conference organised by the Institute of Chartered Accountants of Pakistan (ICAP) in connection with its Golden Jubilee celebrations at a local hotel.
The PML-N leader said that fiscal deficit which was $52 billion before 2008 has now swelled to $115 billion. He called for addressing macroeconomic imbalances to overcome crisis. He emphasised the need for good governance, fiscal discipline and zero tolerance to corruption. Dar also said that current state of economy of the country demands a well thought out growth strategy to put things in order.
In real terms, we need to enhance tax to GDP ratio, as it is key to generate resources to meet expenditures. Talking about energy crises, he said, although there were some inherent weaknesses but we can overcome the crises with strong political will. He said circular debt is a big issue in power shortage and the government needs to address it swiftly. "Energy crisis can be resolved provided there is political will. The government needs to take energy crises seriously," he said.
He expressed concern over high interest rate and borrowing by the government. When the interest rate is crossing double-digit, how the investors would be able to get finance and make future investment plans, he questioned?. The country has 95 million youth and by utilising the services of this human resource we can achieve success in economic field leaps and bounds. He stressed the need for vocational training and imparting skills to youth to enhance economic activities. "We need to reform ourselves economically and socially," he said, adding that "We have wonderful ideas and brains but require implementation and strong political will."
Talking about agriculture sector, he said this sector is of vital importance for us and by paying attention to this sector we can achieve much progress. He said the government needs to strengthen this sector by facilitating all its sectors. Regarding industrial sector, Dar said: "We need to put our economic house in order. We have strong resilience and despite difficult circumstances the country's industrial sector is moving forward." The need is to address macroeconomic imbalances, he added.
Sharing his views on the topic ie, "Testing Times: Reflection on Present and Future," the PML-N leader said: "We are passing through a difficult phase and dynamic challenges for the future." In the global economic crises, he said Asian markets suffered tremendous setbacks leaving certain important lessons to be learnt. He said global financial sector also requires reforms to manage and monitor global financial market in effective and just manner.
Dar who also thrice served as Pakistan's finance minister said he had no desire to get this slot again. "What I want is to put the country on the right path to steer it out of prevailing crises." He added that present state of country's economy demands growth strategy. Dar also highlighted reforms introduced in financial sector during his term saying that strong commitment and devotion are needed for economic well-being in the country.
Earlier, vice-chancellor Lahore University of Management Sciences, Professor Adil Najam and former Governor State Bank of Pakistan, Dr Shahid Hafeez Kardar spoke on the topic of "Economic Turmoil: Paradigm Shift in Global Economic Order." Professor Adil Najam said key impact of globalisation is that we cannot ignore what is happening in the world and the world will not ignore what others do. "Today is the age of ideas and in Pakistan we are full of ideas which is good omen," he said.