‘Pakistan can’t afford boom-bust cycle’: Aurangzeb

 **Title: "Wake-Up Call for Economic Reform": Pakistan Cannot Afford Boom-Bust Cycle by Aurangzeb**  

**Introduction**  

The minister has delivered harsh tidings for Pakistan: "Pakistan can neither afford to boom nor bust." Muhammad Aurangzeb said this while addressing the audience recently. It indicates the unfortunate state of Pakistan's economy, which of late has restricted itself to short bull runs followed by a devastating bust. With prices soaring high, debt mounting and reserves rapidly dwindling, the economy's urgent measures come most opportunely. The blog seeks to examine the implications of his statement for Pakistan regarding the eventual breaking of this curse on the future of the country.  

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**The Wonderland-Cycle: A Vicious Trap**  

Periods of considerable growth achieved with external and temporary borrowing during most of the less-than-boom years have, for Pakistan, resulted in curtailment of activity. This boom-and-bust cycle leaves the country awaiting IMF bailouts—25 since 1958-and struggling with chronic problems of inflation and unemployment and a growing trade deficit.  

Aurangzeb has warned that these cycles can not be afforded any longer by Pakistan. With an inflation creeping near 14%, depreciation of the rupee, and public debt now more than $130 billion, the price really has increased. Short-term solutions, such as ad-hoc loans or populist subsidies-only put off the inevitable and aggravate the problem-the Finance Minister stressed.  

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**Main Areas of Reform to Break the Cycle**  

Aurangzeb devised a plan that sets the roadmap for stabilization of the economy and sustainable growth. Below are the key pillars of his plan:  

1. **Widening Tax Base**: One of the lowest tax-to-GDP ratios in the world stands at just over 9 percent. Aurangzeb stressed the need for computerizing the tax collection system, plugging leaks, and bringing more people and businesses into the tax net through direct or indirect measures.  

2. **Creating Export-Led Growth**: Parallel to this, the government has also focused on the IT sector, textiles, and agriculture to reduce import dependence and narrow the deficit, anticipating a consequent increase in job opportunities and foreign exchange reserves.  

3. **Privatization of SOEs**: Loss-making entities like Pakistan International Airlines and power distribution companies siphon billions consumers dollars every year. Privatization, ideally, can alleviate the associated fiscal burden and effectuate efficiency improvements.  

4. **Engagement with IMF**: Aurangzeb informed the audience that negotiations are going on to have a longer-term undertaking under the Extended Fund Facility, aimed at having resources while locking structural reforms.  

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**The Way Forward is Yet Bright, though There are Challenges on the Road to Reform**  

While the vision is impressive, Aurangzeb must be prepared to arm himself with all the cuts of reformation. His plans have in the by past been derailed by political opposition, inertia, and public backlash against austerity. Most governments speak of reforms but are soon pressured by powerful groups, leading to a bad loss of credibility with international lenders and investors.  

The human cost of these reforms cannot be wished away, however. With about 40 percent of Pakistanis living below the poverty line and youth unemployment exceeding 16 percent, the government needs to balance fiscal discipline with social protection.  

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**Why Does It Matter?**  

The most serious damaging consequences of purely sitting idle are there. Without proper reform in the sense of doing something, it won't be long before the whole nation goes deeper into tearing economic crises, with a wide-open front of stagflation, social unrest, and floundering confidence from investors. Aurangzeb's warning is not one for confusion regarding what requires waking our policies, businesses, and citizens up to. To break the boom-bust cycle is neither an economic imperative alone, but a question of survival for anyone involved in the loop.  

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**Conclusion**  

*“Pakistan can’t afford a boom-bust cycle*,” said Muhammad Aurangzeb as he gave a stark reminder for the country of challenges that have to face it. Certainly, it is a difficult path to take, but not impossible. Structural reforms must be implemented, export-led growth stimulated, and political will engendered in order for the nation to rewrite the script on sustainable development. Time is of the essence now-before late becomes too late.  

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**Keywords**: Pakistan can't afford boom-bust cycle, Aurangzeb, economic reforms, IMF, tax reform, export-led growth, privatization, inflation, fiscal policy, Pakistan economy.