Tola highlights importance of home-grown ‘Green Pakistan'
LAHORE: Leading economist Ashfaq Yousuf Tola has stressed on policymakers to choose between home-grown recipe of Green Pakistan and IMF policies for growth.
The home-grown Green Pakistan, he said, includes keeping policy rates closer to inflation rate; reduce debt servicing; and maintain the currency at its true value; stimulating growth; reduce fiscal deficit, and IMF policies focus on monetary tightening; import led growth, and tariff reduction.
To achieve sustainable growth, he said, we must prioritise policies that foster robust economic expansion. These policies include achieving an export surplus by focusing on our key cash crops: rice, wheat, and cotton.
Tola said Pakistan can reduce its cotton imports by enhancing cotton yields besides increasing rice exports.
Furthermore, said Tola, the FY26 economic strategy must prioritise on introducing targeted policy measures for industrial development. These include rationalising interest rates for industrial borrowers, electricity tariff reduction, abolishment of export financing scheme (EFS) on semi-finished and finished goods, implementing a balanced tariff structure on raw materials, duty free on intermediate goods and fostering export-oriented industrial clusters.
In parallel, he said, advancing the IT sector must be a strategic focus. It is imperative to address the growing trend of IT businesses operating via digital platforms under foreign identities, which leads to foreign exchange losses.
Copyright Business Recorder, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Public debt recorded at Rs76,007bn by end-March
ISLAMABAD: Pakistan's total public debt was recorded at Rs 76,007 billion by end-March 2025, registering an increase of Rs 4,761 billion (6.7 percent) during first nine months of current fiscal year, as it was Rs 71,246 billion on June 30, 2024, the Economic Survey 2024-25 noted. External public debt was recorded at $87.4 billion by end-March 2025, revealing an increase of around $883 million during the first nine months of the current fiscal year compared to an increase of $2.6 billion during the same period of the last fiscal year, however it does not contain liabilities of foreign exchange, public sector enterprises (PSEs), banks and private sector. According to the State Bank of Pakistan (SBP) data, the country's external debt and liabilities stood at $130.310 billion by end-March 2025, which contains, government external debt, short term, from International Monetary Fund (IMF) as well as liabilities of foreign exchange, public sector enterprises, banks and private sector. Pakistan govt's debt stock soars to Rs73.6trn by March-end Pakistan's domestic debt stood at Rs 51.5 trillion by end-March fiscal year 2025, reflecting an increase of Rs 4.8 trillion during the first nine months of the fiscal year, from Rs 47.160 trillion by end-June 2024. The increase of Rs 4761 billion in public debt include Rs (2415) billion of federal primary deficit, Rs 6,439 billion interest on debt, Rs 738 billion on other (Exchange Rate / Cash Balances / Accounting impact). Government external debt accounts for the majority, amounting to $79,131 million, while debt from the IMF stands at $8,277 million. The IMF debt further consists of the federal government debt ($3,878 million) and the central bank debt ($4,399 million). The government's external debt is predominantly long-term in nature, with $78,181 million long-term debt (greater than one year) and $950 million as short-term debt (less than one year). Among long-term external debt sources, multilateral loans form the largest portion, totaling $40,468 million, constituting around 51.8 percent of the long-term external debt. These loans are provided by development partners like the World Bank and Asian Development Bank and are concessional in nature, with lower interest rates and extended repayment periods. The Paris Club debt amounts to $5,943 million, representing approximately 7.6 percent of Pakistan's long-term external public debt. Bilateral loans from non-Paris Club countries amount to $17,860 million (22.8 percent of longterm debt). Outstanding loans from foreign commercial banks amount to $5,850 million constituting around 7.5 percent of long-term debt. These loans are short-to-medium term (i.e., 1-3 years) with market-based interest rates. Short-term debt, which poses refinancing risk, is significantly lower. Multilateral short-term loans amount to $426 million, while local currency securities (T-bills) add another $524 million. In the first nine months of the fiscal year 2025, the total inflows from external debt disbursements amounted to $5,066 million. Of this, multilateral sources contributed the largest ($2,797), followed by commercial/other ($2,011), and bilateral sources ($258 million). There were no bond issuances during this period. Repayments totaled $5,636 million, with multilateral creditors receiving the largest portion ($2,828 million), followed by bilateral creditors ($1,565 million), and commercial/other sources ($1,243 million). Interest payments amounted to $2,660 million, with the bulk of these payments directed towards multilateral creditors ($1,315 million). Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
CM directs registration of non-registered restaurants, marriage halls
LAHORE: A decision has been made to immediately register unregistered restaurants and marriage halls in Punjab. Chief Minister Punjab Maryam Nawaz Sharif has directed to take prompt measures for the registration of all small and large restaurants as well as marriage halls across the province. The Chief Minister while chairing a special meeting approved the decision for the registration of all restaurants and marriage halls across Punjab. The Chief Minister rejected all proposals to enhance taxes. She directed the relevant institutions to expand the tax net instead of merely increasing the tax rate. She asserted, 'Increasing taxes to place unnecessary burden on the public will not be permitted and tolerated at any cost. The owners of restaurants and marriage halls who get themselves registered should not be punished while the tax evaders should not be allowed to go scot-free under any circumstance.' The Chief Minister emphasized that the government does not want to place any sort of financial burden on the common man. She highlighted, 'A person earning Rs200,000 pays tax regularly, while those earning millions do not pay any tax and wilfully indulge into tax evasion.' She also directed the Punjab Revenue Authority, Mines & Minerals, and other government departments to explore new measures to generate as well as enhance revenue in the province. Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
Tola highlights importance of home-grown ‘Green Pakistan'
LAHORE: Leading economist Ashfaq Yousuf Tola has stressed on policymakers to choose between home-grown recipe of Green Pakistan and IMF policies for growth. The home-grown Green Pakistan, he said, includes keeping policy rates closer to inflation rate; reduce debt servicing; and maintain the currency at its true value; stimulating growth; reduce fiscal deficit, and IMF policies focus on monetary tightening; import led growth, and tariff reduction. To achieve sustainable growth, he said, we must prioritise policies that foster robust economic expansion. These policies include achieving an export surplus by focusing on our key cash crops: rice, wheat, and cotton. Tola said Pakistan can reduce its cotton imports by enhancing cotton yields besides increasing rice exports. Furthermore, said Tola, the FY26 economic strategy must prioritise on introducing targeted policy measures for industrial development. These include rationalising interest rates for industrial borrowers, electricity tariff reduction, abolishment of export financing scheme (EFS) on semi-finished and finished goods, implementing a balanced tariff structure on raw materials, duty free on intermediate goods and fostering export-oriented industrial clusters. In parallel, he said, advancing the IT sector must be a strategic focus. It is imperative to address the growing trend of IT businesses operating via digital platforms under foreign identities, which leads to foreign exchange losses. Copyright Business Recorder, 2025
