Former finance minister Miftah Ismail has criticised Pakistan’s economic model, arguing that the country does not have truly competitive markets and that policy decisions often favour powerful industries while increasing pressure on ordinary consumers.

Responding to a discussion on economic reforms and market liberalisation, Miftah questioned the idea that Pakistan operates under a free-market system.

“What free market?” he said, claiming that several key sectors are managed through policies that create advantages for specific groups.

He pointed to the sugar sector, saying market interventions have historically benefited producers while consumers face higher prices. He made similar claims about petroleum markets, arguing that pricing structures tend to support industry interests while adding to the burden on the public.

The former finance minister also criticised fertiliser subsidies, saying benefits provided to manufacturers do not always translate into equal relief for farmers.

Discussing agriculture, Miftah claimed that wheat policies have often worked against farmers while allowing certain investors and stockists to gain.

He further argued that electricity and gas markets are structured in a way that favours producers, leaving consumers to bear higher costs.

“We don’t have free markets. We have an elite-controlled, rent-seeking economy,” Miftah said.

His remarks came after a debate over Pakistan’s economic stabilisation efforts since 2022, with concerns raised that avoiding a balance-of-payments crisis was not accompanied by enough structural reforms.

The discussion also highlighted the importance of strong and independent regulators, with critics arguing that market liberalisation without effective oversight can increase consumer vulnerabilities.