ISLAMABAD: Economists and academics called for a home grown package to avoid the harsh prescriptions of an International Monetary Fund (IMF) bailout and protection for the vulnerable segments from the burden of structural adjustment programmes.

Speaking at a panel discussion on the Current Economic Challenges and the need for Social Protection: Where Does Pakistan Stand, held at the Oxford Bookshop on Tuesday, experts called for collective political efforts for meeting the challenges of balance of payment and budged deficit.

They also stressed on structural reforms in financial institutions, economy and tax system and cuts in the defence expenditure to tackle the financial crisis among other measures.

“We should refuse IMF dictations as Pakistan can live without it,” said economist Asfaque Hassan Khan who is also a former federal secretary.

He said he had advised the premier to not go for an IMF bailout package. He proposed floating sukuk and sovereign bonds to generate $17 billion and advocated a free float of the Pakistan currency, saying no country can be stable with a fixed exchange rate.

MNA Dr Aisha Ghaus-Pasha said the gap between resources and expenditure is widening and that it cannot be narrowed by short-term programmes.

She said the government should make a concrete plan on how to deal with the energy issue, the increasing circular debt and budget deficit and share it with other political parties and the public.

Board of Investment Executive Director-General Saleem Ahmed Ranjha stressed on local investment which amounts to 90pc to 95pc of the total investments, adding that foreign direct investment has never crossed $10 billion, which is 6pc of the budget.

He said the Saudi and UAE investments in oil and energy sectors may offset IMF dependency.

Published in Dawn, November 29th, 2018