8 September 2013: IMF’s mission chief for Pakistan, Jeffrey Frank, says that Pakistan is facing some serious economic threats which can harm the integrity and the economic conditions of our country badly. NawaZ Sharif’s government has quoted annual growth of 5% by the end of 2015-2016. This though very less and unrealistic at the same time, if achieved will be far better than where country stood in PPP’s government.
According to the IMF chief, Pakistan faced a serious challenge on the economic front as country’s fiscal deficit is swelling, foreign currency reserves are going down, inflation rate is increasing and major structural changes are taking place. In account of all these conditions, he suggested that Pakistan is a dire need of some financial assistance before the economy collapses completely and the country faces a big financial blow.
He suggested that to lessen the fiscal deficit gap, government need to raise its revenue and to do that the major impact needs to be made in the tax collection. Irrespective of new tax level being introduced in budget of about Rs.156 billion , tax collection still fall short and the fiscal gap has still not shrunk to the satisfactory level; the reason being quite old and obvious. Instead of coming up with a new level of tax government needs to avoid the tax evasion and take serious actions on it and increase the tax base.
Apart from the issues at the macro level, country faces problems at the micro level as well such as the issue of circular debt and the energy crises. Due to major energy crises and electricity shortage Pakistan has been facing some really serious issues and this is the main reason that many industries have shifted to Bangladesh where the set cost is low and electricity is in ample supply.
Pakistan faces a lot of issues and we need strong policies and implementation to get out of this serious situation. Jobs have declined in all sectors such as event management jobs in Pakistan, software job,etc and unemployment has risen at the same time inflation has increased creating more problems for the people of Pakistan.