IMF pro­gram only tem­po­rary re­lief, says Ka­mal Az­far

The Financial Daily - - CONTINUATIONS -

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%.

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