The government recently claimed that the country was heading towards economic stability even as challenges like inflation, high energy costs and structural inefficiencies persisted.
Some government leaders cited certain improvements, such as a reduced current account deficit, gradual decrease in interest rates, increased foreign exchange reserves and growth resumption due to adherence to the IMF programme. This might be the beginning of a process but we have witnessed such short-term improvements in the past that fizzled out as the transparency and the determination for reform shown at the start were not sustained.
Economic stability refers to a state where an economy experiences steady growth, low inflation, sustained fiscal and trade balances and predictable financial markets. It creates an environment conducive to investment, employment and improved living standards. Stability is characterised by minimal fluctuations in economic indicators, such as GDP, inflation and currency value.
Economic stability is achieved through prudent policies. It is linked to governments’ ability to withstand political pressures. Economy needs fiscal discipline i.e. managing government spending and debt sustainably to avoid excessive deficits. Has this objective been achieved?
We are still far from justifiably bragging about fiscal discipline. The ruling elite enjoy mind-blowing perks not available even to the rulers in........