‘Pakistan needs to align fiscal, monetary policies’

ISLAMABAD: Former caretaker Commerce Minister, Gohar Ejaz said that Pakistan needs to shift towards export-led growth with a focused economic development policy, avoiding the boom-and-bust cycles witnessed in 2006, 2018, and 2022.

“These cycles, driven by consumer goods imports, artificially inflated GDP growth to 6% before resulting in severe current account deficits of $20 billion, devaluation, reduced buying power, inflation, and ultimately, IMF programmes that brought hardship to the people of Pakistan,” he said adding that Pakistan cannot afford to live without growth. Our economic policy must prioritize industrialization, employment, and export-led growth.

Additionally, keeping interest rates at 11%, twice the average annual inflation of 5%, is counterproductive.

“We need to align fiscal and monetary policies to benefit the economy, fostering growth and prosperity for the people of Pakistan,” he added.