Fiscal Imbalances Driving Pakistan's Inflation; Tax Reforms and Spending Cuts Needed
- Fiscal policy is a key driver of inflation in Pakistan due to structural deficits
- Taming inflation requires stronger fiscal-monetary policy coordination
- High government spending and debt servicing costs are fueling money supply growth
- Overhauling the fiscal account rather than debt restructuring is needed
- Taxing the wealthy and closing loopholes is essential to fix fiscal imbalances
