How much of it gets circled back in to economy? If subsidies are being given to textile sector and they end up generating exports then this shouldn't be a problem. If subsidies are being given for luxury imports that do not generate any value then its a problem.
Are these subsidies giving desired results ? Pakistan essentially has become single sector country : Textile... This sector probably eats lion share of subsidies. Is return comparable? Shouldn't this scarce money be used elsewhere?