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 mindset, spiraling debt cycles and elite-driven governance that continued to hinder sustainable growth.
Speaking at a budget seminar at a private university, he said Pakistan’s fiscal approach today remained fundamentally similar to that of the early 1990s, relying heavily on new taxes to bridge budget deficits rather than expanding the economic base.
“In 1990, when our government came to power, attempts at reform were made,” he said, recalling that even then committees would sit for hours and impose taxes on a handful of things to accommodate tax loopholes. “We still do the same today.”
He said he had been involved in budget processes for nearly four decades, but the structural approach had not changed meaningfully.
Abbasi said Pakistan must now determine its direction, adding that wars and repeated external engagements had 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 drop in investment.
He stressed the need for deep reforms in governance and financial management, arguing that unnecessary spending, including bureaucratic costs and official privileges, reflected a fixed mindset that needed to be changed.
