Karachi, September 05, 2025: In a wide-ranging and hard-hitting interview published in the September 2025 issue of US award winning magazine SouthAsia, former Finance Minister Dr. Miftah Ismail delivers a sharp critique of Prime Minister Shehbaz Sharif’s economic governance, arguing that the country is not moving in the right direction and that urgent structural reforms are being ignored.
Dr. Ismail, a two-time finance minister and renowned economist with a PhD from the Wharton School, emphasizes that while some macroeconomic stability has been achieved, it has come at the cost of declining living standards for ordinary Pakistanis. “The average Pakistani has become poorer over the last three years, and per capita GDP has declined annually,” he noted. He attributes this to policy stagnation and a lack of commitment to genuine reform.
One of the most striking assessments comes when Dr. Ismail states, “The growth strategy, along with much-needed reforms to bring about growth, is where Shehbaz Sharif’s government has completely failed this country.” He argues that the current stability is largely artificial, fueled by lower oil prices and suppressed demand due to high interest rates, rather than any visionary economic planning.
Addressing Pakistan’s spiraling debt, Dr. Ismail underscores the need to reduce government spending and revise the NFC Award. “We’re already taxing corporations at 61% and individuals up to 49.5%. There’s no more room to raise taxes; the only solution is expenditure reduction—something this government is unwilling to pursue.”
On inflation, He points to mismanagement of the exchange rate and the failure to address chronic fiscal deficits. He warns that unless structural issues such as inefficient state-run enterprises, unregulated energy pricing, and exclusion of agriculture income from taxation are addressed, the economy will remain in crisis.
Dr. Ismail also calls for the government to step back from the private sector, saying, “Since the private sector is the engine of growth, the government should try to stay away from private businesses as much as possible.” He laments the lack of support for entrepreneurship, noting that government policies often favour entrenched elites.
Concluding the interview, Dr. Ismail advocates for fundamental changes: restructuring the NFC Award, empowering local governments, investing in education, and undertaking aggressive privatization. “Until we have political stability, rule of law, and universal education, no economic policy will succeed,” he cautions.
