IMF program only temporary relief, says Kamal Azfar
KARACHI: Former senator Kamal Azfar has said that Pakistan's decision to again seek funding from the International Monetary Fund, is a temporary panacea and can only provide relief for the time being to an economy and consumer society that is living beyond its means and has a craving for imported goods while these can also be produced locally.
He was commenting on statements of Dr. Hafeez Pasha, a former Finance Minister and Dr. Shamshad Akhtar, former Governor of the State Bank of Pakistan, in a section of the press.
They have said the collapse of the Pakistani rupee represented an economy hurtling towards a debt trap and have proposed that the provincial share should be cut to about 50% in the new NFC Award.
Azfar said everyone knows that the twin deficits of balance of payments and revenue and expenditure are because of the 18th Amendment 2010 and the 7th NFC Award which expired three years back. It had raised the provincial share of divisible taxes to 57.5 and reduced the federal share of the divisible revenue pool to 42.5%.