In a recent lecture at the Karachi Press Club, former Minister of State and economist Asif Tola opposed the new IMF loan program and introduced a “Home Grown” economic plan. The event, which took place on Friday, focused on the economic situation, current account deficit, currency value, and the IMF program. It was attended by Karachi Press Club Secretary Shoaib Ahmed, Joint Secretary Mohammad Mansif Khan, Governing Body member Noor Mohammad Kalhoro, senior economic reporter Ehtisham Mufti, Salman Siddiqui, Shahid Shah, Wakil-ur- Rehman, Rizwan Aamir, Mohammad Yasir, and many other journalists.
Mr. Tola presented his “Home Grown” plan, emphasizing the need for reforms in energy, trade, and tax sectors, boosting agricultural production, and promoting the export of agricultural products. He warned that complying with the stringent conditions of the IMF program could lead to Pakistan taking on an additional $80 billion in external debt over the next four years. He also highlighted that the new program’s strict terms would increase imports, which have been stable at $57 billion for the past few years.
The “Home Grown” program suggests linking wheat and rice prices to global rates while enhancing their production. Tola stressed the potential for increasing cotton production and focusing on sunflower and canola to reduce palm oil imports. He claimed that by increasing wheat production alone, Pakistan could manage its current account deficit. Moreover, a focus on agricultural growth could boost exports to $40 billion in a year, considering the agricultural sector’s current 6.5% growth rate.
Tola’s plan also advocates for import substitution and reducing business and production costs. He argued that the real indicator of economic health is the condition of the people, not political events. He warned that inflation, unemployment, and a lack of basic utilities could lead to public unrest, not political changes. He noted the high-interest rates and significant fiscal deficit due to the disparity between revenue collection and expenditures.
Tola criticized the upcoming federal budget for imposing 1300 billion rupees in new taxes and increasing GST on products to 18%, which would further escalate inflation. He proposed comprehensive reforms in energy, trade, and tax sectors to stimulate economic growth. He suggested taxing agriculture, retail, and real estate sectors while removing all tax exemptions. Simplifying the business environment and implementing trade reforms were also key recommendations.
Answering a question, Tola condemned the imposition of taxes on those installing solar panels as a violation of human rights amid energy crises and high tariffs. Karachi Press Club Secretary Shoaib Ahmed thanked Asif Tola for his visit and presented him with a shield at the end of the program.
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