LAHORE:
Former Prime Minister Shahid Khaqan Abbasi on Thursday called for sweeping structural reforms in Pakistan’s economy, arguing that the country remains trapped in a decades-old tax mentality, escalating debt cycles and elite-driven governance that continue to hamper sustainable growth.
Speaking at a budget seminar at a private university, he said Pakistan’s fiscal approach today remains fundamentally similar to that of the early 1990s, relying heavily on new taxes to cover budget shortfalls rather than expanding the economic base.
“In 1990, when our government came to power, attempts at reforms were made,” he said, recalling that even then, committees would sit for hours and tax a handful of items to plug tax gaps. “We’re still doing the same thing today.”
He said he had remained involved in budgeting processes for almost four decades, but the structural approach had not changed significantly.
Abbasi said Pakistan must now decide its direction, adding that wars and repeated external engagements have not translated into economic stability.
He said the country’s priority should be to improve growth, but lamented that every attempt to boost growth was followed by a decline in investment.
He highlighted the need for profound reforms in governance and fiscal management, arguing that unnecessary spending, including bureaucratic costs and official privileges, reflected an ingrained mindset that needed to be changed.
