Interview with Dr. Hafiz A Pasha

“The fundamental question we face right now is Growth vs Stabilization. This, though also highlights the difference in approach of the two finance ministers, current and outgoing.” “The government has released the position of 9 months fiscal operations, which give us an idea of where we currently stand. The expected reduction in budget deficit is a good sign, but a few problems still exist some of which reminiscent of the previous era. • The rise in statistical discrepancy to 1% of GDP is worrying and indicates a possible breakdown in the budgeting system. • There is a big decline in development spending. The spending data is not consistent with the Planning Commission of releases. This shows, that despite releases the development funds were not adequately spent and could be the reason behind increased statistical discrepancy in the fiscal operations. This, however, indicates the lack of capacity in the system to spend the funds appropriately. • An unusual problem seems to have surfaced, as in attempt to raise the development spending there is a breakdown in the capacity to spend the money at both federal and provincial levels.