AGL 5.33 Decreased By ▼ -0.17 (-3.09%)
ANL 8.50 Increased By ▲ 0.01 (0.12%)
AVN 75.83 Increased By ▲ 0.03 (0.04%)
BOP 5.18 Decreased By ▼ -0.06 (-1.15%)
CNERGY 4.43 Increased By ▲ 0.01 (0.23%)
EFERT 81.90 Increased By ▲ 0.27 (0.33%)
EPCL 49.30 Decreased By ▼ -0.40 (-0.8%)
FCCL 12.55 Decreased By ▼ -0.24 (-1.88%)
FFL 5.58 Increased By ▲ 0.08 (1.45%)
FLYNG 6.78 Increased By ▲ 0.05 (0.74%)
FNEL 4.76 Increased By ▲ 0.06 (1.28%)
GGGL 9.05 Increased By ▲ 0.63 (7.48%)
GGL 14.76 Increased By ▲ 0.81 (5.81%)
HUMNL 6.15 Increased By ▲ 0.07 (1.15%)
KEL 2.58 Increased By ▲ 0.02 (0.78%)
LOTCHEM 27.63 Decreased By ▼ -0.02 (-0.07%)
MLCF 23.45 Decreased By ▼ -0.34 (-1.43%)
OGDC 71.25 Increased By ▲ 0.15 (0.21%)
PAEL 15.13 Increased By ▲ 0.10 (0.67%)
PIBTL 4.88 Decreased By ▼ -0.02 (-0.41%)
PRL 15.63 Decreased By ▼ -0.35 (-2.19%)
SILK 1.07 Decreased By ▼ -0.03 (-2.73%)
TELE 8.84 Increased By ▲ 0.02 (0.23%)
TPL 7.15 Increased By ▲ 0.07 (0.99%)
TPLP 19.37 Increased By ▲ 0.11 (0.57%)
TREET 20.90 Increased By ▲ 0.05 (0.24%)
TRG 135.84 Decreased By ▼ -0.76 (-0.56%)
UNITY 16.31 Decreased By ▼ -0.24 (-1.45%)
WAVES 9.35 Increased By ▲ 0.10 (1.08%)
WTL 1.38 Increased By ▲ 0.03 (2.22%)
BR100 4,154 Decreased By -3.7 (-0.09%)
BR30 15,315 Decreased By -24.6 (-0.16%)
KSE100 41,601 Decreased By -50.9 (-0.12%)
KSE30 15,375 Decreased By -5.5 (-0.04%)

Pakistan’s growth model facilitates only the top 1% elite: Miftah Ismail

  • Former finance minister says lower and middle income groups suffer due to overheating of economy
Published October 3, 2022
Follow us

Former finance minister Miftah Ismail said on Monday that Pakistan’s growth model only facilitates the top 1% elite of the country while making the lives of lower and middle income groups miserable.

“The government has given Rs570 billion worth of loans to them at 1% interest rate to import machinery, however, they also ordered consumables for themselves and their families from abroad, thus inflating the import bill,” he said while speaking at the 37th Corporate Excellence Awards organised by the Management Association of Pakistan (MAP) at a local hotel here on Monday.

“When the economy heats up, it is the lower and middle income groups that face the brunt as companies lay off employees.”

Miftah estimates losses at $18.5bn

According to him, Pakistan’s growth model was “upside down as it gives protection to manufacturers at the cost of value addition”.

He added that Pakistan should not have a lofty import bill of $80 billion with just $30 billion revenue in exports and $30 billion remittances.

“Every government leaves depleted foreign exchange reserves at the end of its term,” he lamented.

Citing that the country failed to establish any significant brand in exports, he stressed the need for the country to turn export-oriented.

Pakistan's finance minister Miftah Ismail says he will formally resign from role

Besides, he emphasised that the country should focus on the development of its agriculture sector because “it is quite unfortunate that Pakistan is importing $2 billion worth of cotton, $1 billion worth of pulses and $4.5 billion worth of edible oil.”

“We are importing pulses from countries like Ethiopia, which reflects the dismal state of domestic agricultural sector,” the former finance minister said, adding that this whole situation was leading to back-to-back budget deficits.

When the current account posts a deficit, the government has to finance it through loans, Miftah pointed out.

“We should learn to live within our means. If we cannot export, then we should not import in huge amounts,” he opined. “Our private sector does not have the money required to finance the deficit and our provinces are not helping as well.”

He added that the provinces had increased their payrolls by 400% in the last few years and many officers were earning 50% higher salaries than federal government officials.

He also criticised Pakistan’s education system, citing that 10% of the world's illiterate children are from Pakistan.

“India has world-class universities which helped it grow by leaps and bounds in technology and IT,” the former finance minister said.


Comments are closed.

Mushtaque Ahmed Oct 03, 2022 09:26pm
This economic model is commonly referred to as "Elite Capture" implying that too few possess too much. This has led to increasing number of have-nots in Pakistan over the past 75 years. The land owners, business owners, industrialist, bureaucrats, military complexes must reform the model as the system is tyrannical.
thumb_up Recommended (0)
Pakistani1 Oct 03, 2022 11:19pm
Miftah is absolutely right. However, is there anything he can do to reverse it?
thumb_up Recommended (0)

Pakistan’s growth model facilitates only the top 1% elite: Miftah Ismail

Intra-day update: rupee registers marginal improvement against US dollar

Supreme Court declares new Reko Diq mine deal legal

Forex reserves fall to $6.7bn on repayments

China’s Xi meets Arab leaders on ‘milestone’ Saudi trip

Oil bounces on pipeline shutdown, but heads for weekly loss on demand woes

CARs: ADB lists barriers to trade flows

FX reserves may rise in H2FY23: All debt repayments on track, says SBP governor

‘Country of Particular Concern’: Pakistan conveys its concerns to US

765kV DC transmission lines: FD asks PD to take action on award of contract

Cabinet approves restoration of 11 revoked POL exploration licences