Call for Governance Reforms to Boost Pakistan’s Economy

Karachi: Malik Muhammad Bostan, Chairman of the Exchange Companies Association of Pakistan, has thrown his support behind a reform initiative led by Federal Minister for Finance and Revenue Senator Mohammad Aurangzeb. Bostan emphasized the importance of adopting a governance model centered on reforms to bolster Pakistan’s economy, regain investor trust, and establish a foundation for sustainable growth.

Bostan highlighted the need to limit government intervention in the economy, advocating for growth driven by the private sector. He pointed to several encouraging developments for Pakistan’s economy, such as the resolution of the Pakistan-India conflict, improved international standing, and enhanced value of the Pakistani passport. He praised Field Marshal General Syed Asim Munir and Prime Minister Mian Shahbaz Sharif for garnering unprecedented recognition from U.S. President Donald Trump.

The chairman acknowledged that Pakistan has achieved macroeconomic stability, with international rating agencies upgrading the country’s outlook. The completion of the second review under the IMF program was noted as a significant milestone. Bostan emphasized the importance of leveraging this stability and geopolitical factors to boost trade and investment through private sector initiatives. He underscored that macroeconomic stability should be a stepping stone rather than the ultimate goal, advocating for collaboration with the private sector to engage top talent for further advancements.

Bostan stressed equipping the youth with skills in digital and technical fields, such as coding, blockchain, and artificial intelligence, to enable them to access high-value job opportunities.

Addressing fiscal challenges, Bostan referred to a report from the Ministry of Finance indicating that government debt had risen by 3.6%, reaching 74.5% of GDP. The government aims to reduce this to 70% by the fiscal year’s end and further to 50% by 2035. He highlighted the growing interest burden on the nation’s debt, attributing it to low revenue and rising expenditures.

To increase revenue, Bostan suggested focusing on sectors like IT, agriculture, and industry. He cautioned against the heavy tax burden imposed by the Federal Board of Revenue, which he claims drives multinational companies out of the country, potentially reducing revenue collection and increasing unemployment and poverty.

The press release from the Exchange Companies Association of Pakistan underscores the need for strategic reforms to ensure long-term economic prosperity.