PBC’s Call for Structural Reforms

The Pakistan Business Council (PBC), in its 100-Day Economic Agenda for the Incoming Government, issued prior to the general elections, advocated a well-structured IMF programme for Pakistan to fix the fundamental issues confronting the economy. Now that a decision has been taken to approach the IMF, PBC hopes that the programme will take a holistic view of the factors leading to the present crises instead of merely managing them. The paper attached revisits the rationale and concludes that a “Make-in-Pakistan” approach, in a well-structured programme is the only way to revive industry, generate jobs, boost exports, encourage import substitution, leading to macro-economic stability. An essential enabler of this is the broadening of the tax base, closure of avenues of tax and wealth leakages and the simplification of processes to make it easier and cheaper to do business. The paper concludes that this is an opportunity to break out of the recurring crises that has seen Pakistan go to the IMF on twelve occasions in the past 28 years. Otherwise, the country will suffer pain, without sustainable gain.