There is lot of hue and cry from opposition parties on IMF. It is ironic as they mercilessly mortgaged Pakistan . And recipient themselves many time on conditions more derogatory . It is all political . The Burden of debt is so staggering that nine month on the govt IK is still cleaning the courtyard left by wizards of previous government. Nine billion obtained from friends just evaporated in repayments of previous loans which by now stand at 7.5 billion and may be Ten by June. If that was not so there was no need to go to IMF . Apparently IK government genuinely did not want to go IMF due to political agenda of IMF. Recently leaked manual of US military clearly spell out the modus operandi used by them to strangle target countries through IMF and WB. In Pakistan’s case , it is , they felt slipping out of their clutches. It has to be tamed. In fifth generation war twisting arm of target country by economic means is an established fact. They aim is to cut CPEC and port Gawder and increasing Chinese influence has to be curtailed. Pakistan’s success in handling the subversive activities forced indo, US and others anti Pakistan active players to resort to unconventional moves to destabilise Pakistan. Massive repayments of loans taken by previous regimes have drained Pakistan’s financial position to an extent that Pakistan is forced to go to IMF. Massive propaganda has been launched against PTI government lambasting them of failures not with standing the fact , the muck they are cleaning is oppositions on doing. All efforts have been made to create tensions within ruling party. The departure of elected comrades of IK cabinet and induction of non political technocrats has created communication problems for him. The elements in business linked to previous two regimes are also still active coupled with corrupt bureaucracy who manipulate the economic crisis. Outward flight of dollars is still going on. Asking a need to keep eye on money changers and also tightening banks indulging in it.
In tax collection , reduce the role of ITO , trade and industrial bodies be made responsible. Number of proposals were earlier given to previous governments but who want to part with golden sparrow.
Exports have not risen nor industrial sector took off , a la failure of a technocrat in charge of Commerce and industry whose past record is not very encouraging. Nine months on steel mill and other loss making entities issue is still unresolved as no plan has come up so far to either revive them or find out other solution. These entities are bleeding exchequer . This clearly indicate failure of Ministry of Industry and Commerce , thus, asking for immediate review of their performance. Change of approach in these ministries is evidently essential.
From the last one year our group panels in various forums have been advocating to tighten luxry imports. Unfortunately artificially kept at lower value dollar encouraged to shun industry and dwell in to trading to make quick money. Some finest industries has been closed due to under invoices cheap import and with lower dollar value availability. Govt must support to revive tiles/ ceramic industries ,hardware , so essential for housing sector. Similarly scores of other industries closed be revived.
Support price for wheat and sugar cane be abolished and let market decide the price. Govt purchase be also on market price. As beneficiaries are large land holders. Middle level and poor farmer
Living on loans, this nation has during last year imported mobile phones worth $ 1.3 billion, cars4.8 billion, misc food items 1.7 billion and so on . This year largest number went forUmra in the world where as Turkey for long kept the figure low. Although we are signatories of WTO , in the preamble nation states can invoke and take action to avoid default. We must put heavy regulatory duty on all luxury items, as many countries are doing. Mobile phone import be allowed in CKD to boost local industry. Similarly , auto policy protect few. I as head of three brands , in last twenty years , has been part of the negotiation and understand the pressures by existing players. We must abandon this Auto policy policy and allow assembly on Hundred percent kit to any one who has a plant or can set up new plant. The duty be set at on only 5-10 percent. This will allow world leading manufacturers to come to pakistan . It will allow local part Industry to develop as no where in the world parts are manufactured exclusively for on bran of car . There are hundreds of vendors in many countries. The junk, used car import be banned as the only beneficent is Japan and few agents. This will allow more collection of tax but also good cars at cheaper price as competition is the key. There should be no Hp restriction and it is the investor to decide.
Similarly, CKD of RHD cars is costly by 20 percent as only 22 percent world market is RHD . Pakistan after CPEC is linked to China , Europe , Iran ME and Central Asia all Left Hand drive. Switch to LHD will not cost much but save billions in cost and allow auto export to all these countries. Parts manufacturers be financially supported to boost auto sector.
These are few indicated measures , the field is very vast and need a study in multiple areas.