The former head of the Federal Board of Revenue (FBR) of Pakistan, Shabbar Zaidi has said that Pakistan at this moment is bankrupt and not in a state of ‘going concern’. Zaidi said this during a seminar at Hamdard University on ‘Evolving Pakistan Economy, Challenges and Opportunities for Youth’ held on December 15.
“We keep saying that everything is good, the country is running well, we have achieved great success and we brought tabdeeli (change) but this is wrong. In my view, Pakistan is, at the moment, bankrupt and not a going concern,” Zaidi had said.
Continuing his criticism of the economic policies of Pakistan’s Prime Minister Imran Khan, the former FBR head said that one should admit Pakistan has reached bankruptcy hence appropriate steps needed to be taken.
“It is better if you decide first that we have reached bankruptcy and we have to move forward compared to saying everything is running well and I will do this and that. These are all things to deceive the people,” Zaidi said.
However, Zaidi who was subjected to political cross-firing in Pakistan over his remarks, later on, said that he was misreported and only a selected portion of his speech was cherry-picked.
Zaidi in a series of tweets said that his statement should be taken in a complete and proper perspective.
But even in these tweets, he maintained that what he said had a basis and conviction. He was not denying that Pakistan has become a bankrupt entity.
My speech in Hamdard University is being misreported. There was a presentation of half & hour. Only three minutes have been cherry picked. Yes I said that with this constant current account & fiscal deficit there are issues of bankruptcy & going concern but look at the solution.
— SyedShabbarZaidi (@SShabbarZaidi) December 16, 2021
Zaidi asked Imran Khan government to recognise the reality then living in illusion. “We need to have a reality check,” he said.
Total foreign debt of over 115 billion USD. Constant estimated current account deficit of say at the USD 5 to 8 billion. When we will be able to pay that debt ? It is better to recognise the reality then living in illusion. We need to have a reality check.
— SyedShabbarZaidi (@SShabbarZaidi) December 16, 2021
Zaidi went on to say that bankruptcy and credit default are two different but related terms. When loan liabilities are not repayable from foreseeable earnings it is called bankruptcy and Pakistan has been facing this situation for a long time.
‘Bankruptcy’ & ‘Credit Default’ two different but related terms. When loan liabilities are not repayable from foreseeable earnings it is ‘Bankruptcy’. We face this situation for a long time. June 30, 2018 was worst.We borrowed with a promise to restructure. Story from 1970-2020.
— SyedShabbarZaidi (@SShabbarZaidi) December 17, 2021
Zaidi hits out at foreign and education policy of Pakistan
Zaidi advocated change in the political, foreign and educational policy of Pakistan. Zaidi said that Pakistani government needs to ensure ‘extremely good’ relations with the United States and the West if its wants to increase its export.
He also said Pakistan also needs to improve its regional trade and questioned the policy of Pakistan towards India. Zaidi said if Pakistan can bring raw materials for medicines from India, then “why do you have an issue with other things? This means your decision to not trade is wrongly based.”
Without mentioning Pakistan sponsoring Islamic radicalism Zaidi advocated reform in the education system. Zaidi said that teaching of English should be promoted in Pakistan and the teaching of theology to higher grades should be limited.
