Indeed, Pakistan is struggling to revive its $350 billion dollar economy. Due to the just concluded IMF program, the economy experienced slight stability as inflation came down drastically from 38 per cent to 17 per cent. Controlling external account deficit through an import control mechanism was a desperate move. It worked but came at a heavy price - a staggering growth that is expected to be two per cent this year. Presently, the country is dealing with a high fiscal shortfall and a tough IMF conditions-based future program. The situation is precarious, to say the least. Add into it the rise of the dollar to Rs 300 by end-December and you have a real problem at hand. Is another scare of ‘default’ awaiting us? Meanwhile, the debate on political uncertainty and economic stability continues.
Let’s stop here for a minute and visualize if the present government could enable the country to stand on its economic feet, say in the next two to three years, without first bringing sanity in the political domain, if at all it stays in power for that long. The present coalition government is trying hard to stabilize the country’s economy mainly through privatization, expanding the tax net and attracting huge FDIs. Since miracles have stopped occurring in the present age of Artificial Intelligence, it would not be possible for Islamabad to ‘discover’ the desired economic stability any time soon. The reason is twofold. One, the economic recovery is being addressed through political handles. Two, it is an accepted fact that in the absence of good and honest governance, no development is sustainable.
BMP asks govt to fix anomalies as budget........