Former prime minister Shahid Khaqan Abbasi on Thursday urged Pakistan to introduce major structural reforms, saying the country’s economy remained stuck in an outdated system driven by excessive taxation, mounting debt and elite-focused governance.
Speaking at a budget seminar at a private university, Abbasi said Pakistan was still following the same fiscal approach adopted in the early 1990s, where governments relied on imposing new taxes instead of expanding the economy and increasing productivity.
Recalling his long involvement in budget-making, he said little had changed over the past four decades. According to Abbasi, policymakers continued to focus on taxing a limited number of sectors to fill budget gaps rather than introducing meaningful reforms.
He stressed that Pakistan must now determine a clear economic direction, adding that repeated wars and foreign engagements had failed to deliver long-term stability.
Abbasi also expressed concern over declining investment whenever economic growth improved. He called for broad reforms in governance and fiscal management, criticizing unnecessary state spending, bureaucratic expenses and official privileges that, he said, reflected a deeply rooted administrative mindset.
