- Dr. Bengali argues that politicians need to prioritize the people’s needs.
- Pakistan’s tax system unfairly burdens the poor, according to Dr. Bengali.
Pakistan’s economy is in critical condition, running on “ventilators” according to renowned economist Dr. Kaiser Bengali, who spoke at the 7th Benazir Bhutto Memorial Lecture organized by the Shaheed Mohtarma Benazir Bhutto Chair at the University of Karachi.
Dr. Bengali painted a grim picture, stating that Pakistan became “bankrupt” five to six years ago and is now struggling to repay loans. This lack of creditworthiness, he argued, has eroded trust in the country, discouraging foreign investment and leading to business closures due to rising taxes.
He highlighted the issue of malnutrition among children, a stark contrast to the import of luxury pet supplies. Dr. Bengali emphasized the unsustainable nature of Pakistan’s reliance on debt, with even government salaries being paid through borrowed funds due to insufficient internal revenue.
The economist criticized the current tax system, which he said unfairly burdens the poor while letting the wealthy off easy. He also pointed to policy decisions made after 1977 as a root cause of energy shortages (load shedding).
Dr. Bengali lamented the decline of Pakistan’s manufacturing sector. He attributed this to factors such as lower import duties in Bangladesh compared to Pakistan’s rising taxes on factories. He even cited the outsourcing of Urdu book printing due to a tax on paper imports but duty-free book imports.
However, Dr. Bengali expressed optimism for Pakistan’s future. He believes the country has the potential to become a regional economic leader, with unemployment rates as low as 2-3% within five years. This, he stressed, requires strong political will and leadership that prioritizes the national interest.
Professor Dr. Naeem Ahmed, Chair of the University of Karachi’s Department of International Relations, also spoke at the event. He emphasized the importance of a stable Afghanistan for Pakistan’s border security and the need for improved regional relations, particularly with key neighbors like India and Iran. Dr. Ahmed argued that a healthy Pakistani economy is vital for positive foreign relations.
The Benazir Bhutto Memorial Lecture serves as a platform for discussing critical issues facing Pakistan. Dr. Bengali’s stark assessment serves as a wake-up call, urging the nation to address its economic woes through responsible leadership and strategic policy changes.