Miftah Ismail Advocates for Systemic Reforms to Boost Pakistan’s Economy

Former Finance Minister Dr. Miftah Ismail has urged the implementation of significant reforms to benefit both individuals and enterprises, cautioning that the existing framework in Pakistan impedes advancement.

He emphasized that substantial inflation, increasing joblessness, considerable taxation, and elevated energy costs present major impediments to economic expansion and community prosperity. He insisted on immediate measures to reinstate stability and competitive capacity.

Dr. Ismail served as the Principal Guest and Main Orator at the Institute of Cost and Management Accountants of Pakistan (ICMA) Thought Leadership Lecture Series, hosted at the ICMA Headquarters in Karachi. The event also marked the launch of “Pakistan’s Cement Sector: Growth, Performance and Company-to-Company Analysis 2018–2024”, penned by Muhammad Bashir Khan, FCMA, who presented a summary of the publication.

Economic Challenges Highlighted

During his speech, Dr. Ismail detailed Pakistan’s financial difficulties. He observed that per capita GDP is trailing behind neighboring nations, fiscal shortfalls are growing, and community well-being is deteriorating. He highlighted that despite an effective tax rate nearing 40%, Pakistan lacks commensurate welfare provisions. Furthermore, energy prices put local industries at a disadvantage, with electricity generation costing roughly 20% less in Bangladesh.

Additional Concerns

He also drew attention to inadequacies in law enforcement, noting that bureaucratic obstacles and expenses associated with lodging First Information Reports (FIRs) diminish faith in the judicial system. The education crisis, according to him, represents Pakistan’s most concerning issue: approximately 40% of children between 5 and 16—roughly 400,000 in Punjab and 1.7 million in Sindh—are not attending school, while literacy rates in Khyber Pakhtunkhwa are declining.

He cautioned that while other nations equip students for STEM fields and AI-driven learning, Pakistan struggles to deliver basic reading, writing, and arithmetic skills. Insufficient healthcare infrastructure further hampers productivity and sustained growth.

Call for Comprehensive Reforms

Advocating for reforms, Miftah underscored the necessity of a thorough restructuring of Pakistan’s existing system. He proposed revising the National Finance Commission (NFC) Award, reinforcing local administration, contemplating the creation of new provinces, removing distortionary levies like the Workers’ Welfare Fund, streamlining energy tariffs, encouraging strategic privatization, broadening property taxation, and mobilizing domestic resources. He additionally emphasized investments in public transportation, renewable energy sources, and underutilized sectors, such as the aqua economy, while giving priority to education and skill enhancement.