“The 1% elite controls this country,” said Ismail Those who had a portfolio of six months. He claimed that while the American billionaire Bill Gates And while Steve Jobs “came out of nothing and still made a fortune on his own talent”, almost all wealthy Pakistanis are beneficiaries of the “generation of wealth”.
“When the economy heats up, the lower and middle-income groups have to bear the brunt as companies lay off employees,” the former minister said.
“The (previous government) distributed Rs. 580 billion of the richest 1% of Pakistanis under the Temporary Economic Refinance Facility. The government granted loans to import machinery, however, the elite also ordered consumables for themselves and their families from abroad, thus increasing the import bill. The government itself is borrowing at 15%, but the rich got money only at 1%,” he said, adding that the liquidity injection increased imports of machinery and widened the current account deficit as local business groups cater only to domestic consumption. used to produce goods.
Ismail, without naming anyone, said a group solicited his support to set up a 500,000-ton polypropylene factory when he was finance minister. Ismail said he sought 20% duty protection for 20 years because “the corporation could not compete against its Chinese counterparts”.
As Dawn reports, he also criticized the auto sector for its inward-looking approach, which has been draining foreign exchange on imports for decades without earning any dollars through exports.
Financial Crisis
Ismail, who has been replaced by Ishaq Dar, was the fifth finance minister to take the seat in less than four years as Pakistan’s economy has seen continued turmoil, while its current account deficit has widened and rising inflation. has put pressure on both families and businesses.
Ismail has said that the government led by PM Shahbaz Sharif was suffering due to economic policies led by PM Imran Khan, who was deposed by the former Pakistan Tehreek-e-Insaf (PTI) regime.
imf bailout
Pakistan reached an employee-level agreement with the International Monetary Fund (IMF) in late July after months of unpopular belt-tightening by the government, which took power in April and effectively ended fuel and electricity subsidies and introduced new measures to broaden the tax. Base.
The new government has cut subsidies to meet the demands of global financial institutions, but risks the wrath of voters already struggling under the weight of double-digit inflation. Pakistan had hoped for an early revival of the bailout, but the IMF is yet to release the much-needed installment.
Adding to the crisis, devastating floods engulfed large parts of Pakistan this month. The disaster killed more than 1,500 people and caused damage estimated at $30 billion, amid fears that Pakistan would not meet its debts.