Dr. Shahid Rasheed Butt, the former President of the Islamabad Chamber of Commerce and Industry (ICCI), stated on Tuesday that Chief of Army Staff General Syed Asim Munir deserves the credit for saving Pakistan from bankruptcy. General Asim Munir was also behind in approving the IMF loan, which was necessary to save Pakistan, he said.
He has also managed to keep the exchange rate stable for a long time, an achievement that would not have been possible without stopping the smuggling of dollars and controlling the unruly currency dealers.
In a statement issued today, Shahid Rasheed Butt stated that Munir is now trying to make electricity cheaper, and people are likely to get 20 to 25 percent relief in their electricity bills. The business leader said that due to Asim Munir’s efforts, fears of the dollar reaching 350 rupees have died down, and the economy is recovering. He is well aware that only a stable economy allows for the protection of ideological and geographical borders.
According to Shahid Rasheed Butt, the country would have gone bankrupt and entered a civil war if a politician held the position of finance minister. He said that the IMF program would reduce the government’s difficulties, payments would start, and taking more loans from the global market would be possible. However, due to the uncertainty, local and foreign investment possibilities are unknown.
He noted that Pakistan, an agrarian and natural resource-rich nation, is running on loans due to ongoing elite capture and cannot stand on its own unless politicians isolate key ministries like finance, trade, and planning.
He said the Ministry of Finance should be shielded from politicians for a minimum of ten years. If politicians somehow reach the Ministry of Finance, then the country will again face bankruptcy.
Shahid Rashid Butt stated that we should make sure the IMF’s current program is the last one, use the money properly, and not subject it to the whims of the political elite. He stated that COAS make life difficult for tax evaders and implement a mechanism to control growing government expenditures.
Shahid Rasheed Butt pointed out that while there have been some initial steps to broaden the tax base, they remain insufficient. However, continuing “business as usual” will no longer be viable.
We need structural reforms immediately, especially in state finances. Even though an IMF program is in place, the government is still having difficulty getting financial help.
He said that foreign investors and the rest of the world are still unsure that real reforms are happening. He continued, “If Pakistan doesn’t completely change its public finance system, it will have the same budget problems when the current program ends.”
Mr. Butt continued by emphasizing the necessity of creating fiscal room to achieve growth without worsening the current account. Making major changes to the government’s money-handling practices is the only way to accomplish this. A strong and clear plan is essential for increasing the tax base. This is critical for maintaining a stable budget and making the economy more equitable in terms of capital and work allocation.
A comprehensive plan is required to shift government spending from recurring costs to public investments. The current budget doesn’t do much to make spending more efficient. It is impossible to increase public investment without making structural changes to ongoing spending, which could lead to another balance-of-payments problem.
Taking on more debt is not the answer; cutting unnecessary spending would significantly lower current costs and should be the top goal. He demanded that we also fix the lack of market-friendly policies in public funding and the bias against business in general and exports in particular.
Making these changes will require careful planning. A fiscal agreement with the provinces is also important. He warned that Things are improving for the country’s business right now, but that does not mean the government should relax and start lavish expenditures.
