Miftah Ismail Defends Sharif Leadership, Criticizes Economic Policies as Interest Rate Rises

Islamabad: Former finance minister Miftah Ismail has said he has never found former prime minister Nawaz Sharif or current Prime Minister Shehbaz Sharif to be corrupt, adding that he did not level corruption allegations against them even after leaving the party.

Speaking on ARY News, Ismail said that provinces have ample financial resources and, in some cases, better administrative facilities than the federal government. However, he criticized the country’s overall economic performance, noting that despite Shehbaz Sharif’s four years in power, economic growth has remained sluggish.

He reiterated his long-standing call to review the National Finance Commission (NFC) award, arguing that fiscal adjustments are necessary. Ismail also suggested cutting the Public Sector Development Programme (PSDP) by Rs500 billion, saying the federal government is spending beyond its means.

Highlighting taxation issues, he claimed that a disproportionate burden falls on a limited segment of taxpayers, including salaried individuals and corporations, while pointing out high fuel taxes, estimated at around Rs110 per litre. He further warned that Pakistan’s per capita income has been declining over the past decade.

Ismail stressed that without an increase in exports, remittances growth would remain limited, forcing the country to rely on loans. “We celebrate loans by taking from one country to pay another,” he remarked, criticizing the cycle of borrowing.

He also raised concerns about rising energy costs, questioning how economic growth could be achieved amid expensive electricity and gas.

Meanwhile, the State Bank of Pakistan has increased the policy rate by 100 basis points to 11.5%. Economists attribute the hike largely to rising global uncertainty and increasing petroleum prices amid tensions in the Middle East, warning that higher fuel costs could further drive inflation in the country.