EDF urges better tax management and regional trade integration

KARACHI: President Economic Diplomacy Forum (EDF) Dr Muhammad Farooq Afzal has said that Pakistan’s solution lies in better tax management, reduction of government waste, and enhanced trade integration within the region to avoid dependency on international lenders.

He highlighted that regional trade currently accounts for less than six percent of Pakistan’s total trade, calling it a lost opportunity given the country’s location at the crossroads of South Asia, Central Asia, and the Middle East.

The Economic Diplomacy Forum (EDF) has expressed serious concern over Pakistan’s continued reliance on external borrowing and IMF assistance, urging the government to adopt structural fiscal reforms and promote regional trade as sustainable alternatives to repeated loan programs.

“Borrowed money stabilizes numbers, not nations. Pakistan needs fiscal discipline, not fiscal dependency,” said Dr. Farooq Afzal. He said the real crisis lies in uncontrolled non-development expenditures, inefficient public spending, and weak governance. Until these are fixed, every new loan only deepens our long-term vulnerability.

“Economic diplomacy and regional integration must replace economic isolation. We should strengthen trade partnerships with China, Türkiye, Iran, Afghanistan, Russia, and Central Asia to achieve stability through commerce, not credit,” he added.

The EDF called for a national dialogue on fiscal reforms and regional cooperation, asserting that the country’s prosperity depends on financial responsibility, industrial competitiveness, and economic self-reliance.

Copyright Business Recorder, 2025