Defence Minister Khawaja Asif told the National Assembly on Tuesday that Pakistan’s economy had moved beyond the risk of default and regained stability after undergoing an IMF-backed adjustment programme.
Participating in the budget debate, Asif said the country faced insolvency when the current government presented its first budget and remained under constant threat of default. He said tough IMF conditions helped stabilize the economy and restore solvency.
The minister said Pakistan was now on a positive economic trajectory and could achieve annual growth of 6 to 7 percent within the next two years if reforms continued.
Calling for tax reforms, Asif argued that excessively high taxes encourage evasion and should be reduced to levels that promote compliance and broaden the tax net.
On the security situation in Balochistan, he said terrorism and unrest were the result of decades of accumulated policy failures rather than the actions of any single government. He stressed that addressing the issue required a collective national approach and solutions acceptable to the people of the province.
Discussing Afghanistan, Asif said Pakistan had engaged directly with Afghan authorities through multiple rounds of talks in Kabul, Türkiye and Qatar. He said Afghan officials had verbally acknowledged Pakistan’s concerns regarding militant activity but declined to provide written assurances.
The defence minister said terrorism in both Balochistan and Khyber Pakhtunkhwa continued to have links across the Afghan border. He added that Pakistan had explored options to relocate militant elements deeper inside Afghanistan but sought guarantees they would not return.
Asif said 4,317 people, including civilians, security personnel and law enforcement officials, had been killed in terrorism-related incidents since 2022, describing the losses as a major national sacrifice.
He also criticized past policies that drew Pakistan into foreign conflicts, saying the country paid a heavy long-term cost in the form of militancy, instability and security challenges.
Referring to Pakistan’s diplomatic engagement between the United States and Iran, Asif said the country’s international standing had improved significantly over the past year. He credited the political and military leadership for contributing to the process and said improving ties with Iran could create major economic opportunities, particularly for Balochistan, through expanded energy and trade cooperation.
