The Institute of Policy Studies at the National University of Science and Technology (NUST) has unveiled a comprehensive plan to tackle Pakistan’s economic hurdles.
Emphasizing the urgency of the situation, the institute stressed the immediate necessity of lowering the country’s high interest rates, urging firm commitment from both civilian and military leadership.
According to the NUST report, Pakistan’s economy faces five significant issues, including high fiscal and current account deficits, increasing debt, sluggish economic growth, and persistently high inflation rates. The report highlights the importance of promptly addressing these challenges.
NUST specifically recommends an urgent reduction in the current policy rate, currently standing at 22 percent. It anticipates substantial annual savings with even a modest one percent decrease. Additionally, NUST proposes consolidating the federal development budget for the next two years and refraining from initiating new infrastructure projects.
Furthermore, the report suggests expediting the privatization of state-owned enterprises like Pakistan Steel Mills and Pakistan International Airlines (PIA) to mitigate losses. It also calls for reforms in social welfare programs such as the Benazir Income Support Program (BISP), advocating for a reduction in the number of beneficiaries and fixed budget allocation.
Moreover, NUST underscores the importance of sharing financial responsibilities with provincial governments, boosting revenue generation, and implementing a point-of-sale system to streamline taxation, including sales tax.
In terms of human resource management, the institute recommends appointing highly qualified professionals to key ministries such as Finance, Planning, Federal Board of Revenue (FBR), Energy, Commerce, and Industry. It also proposes forming a specialized team to enhance exports, acknowledging the crucial role of friendly nations in Pakistan’s economic recovery and stability.
NUST’s comprehensive proposal underscores the need for concerted efforts and strategic reforms to navigate Pakistan through its economic challenges and pave the way for sustainable growth and development.
