Stressing on a long-term plan for reviving the country’s ailing economy, Prime Minister Shehbaz Sharif stressed the need to have a Charter of Economy and political stability. Pakistan’s foreign exchange reserves are declining fast amid ballooning import bills and a stalled IMF program. 

“Let us sign a ‘Charter of Economy’ for economic stability and progress and seal it so that whosoever will come to power cannot change basic goals,” Sharif was quoted as saying by Dawn at a pre-budget conference with all stakeholders.

Addressing the conference, which was attended by top industrialists, agriculturists, and economists,  Sharif said, “If there will be no political stability, there will be no economic stability.” Significantly, the government is also considering separate plans for various sectors to fast track recovery. He also asked stakeholders to provide suggestions and input.

The Sharif government came to power in April after dislodging former prime minister Imran Khan. However, the government kept delaying necessary measures, including some painful reforms, as Khan kept mounting pressure on the government through his rallies.

The IMF’s refusal to revive the $6 billion bailout package over the government’s initial refusal to implement austerity measures made things worse for the government. In recent weeks, the Sharif government has reduced fuel subsidies drastically and increased electricity tariffs.

More such measures are in line as the government focuses on economic stability. 

“Until now, the hard time has been faced by the poor but today it’s the turn of well-off people to take the burden,” Sharif said on Tuesday, adding that the real estate sector should be taxed and vertical housing should be encouraged to save as much land as possible.

Experts also fear the risk of the country defaulting on its loan obligation if the talks with the IMF don’t succeed. High global fuel and commodity prices led to an increase in import bills. In the financial year 2021-22, the country is expected to record a whopping trade deficit of around $45 billion.

(SAM)