KARACHI:
Since the ouster of former Prime Minister Imran Khan in March, Pakistan has been experiencing political and economic upheaval. Many have gone as far as suggesting that the country is nearing bankruptcy. The current account deficit and the huge difference between imports and export are fracturing the country’s economy. Artificially controlling dollar prices has become a common activity, which is regularly adopted by different financial ministers to keep prices artificially low.
The State Bank of Pakistan is left with only a handful of dollars to run the country’s economy. Policymakers still do not have any plan to escape bankruptcy and recession in a short period. The Finance Minister, Ishaq Dar, will once again go to the International Monetary Fund (IMF) and other international lenders carrying the beggar’s bowl who are ready to fish in troubled waters. They will produce a long list of demands to provide the bailout package. If international lenders refuse to offer another bailout package, then we may witness a Sri Lanka-like situation.
Solely relying on foreign direct investment and remittances is bound to wreck the county’s economy. The Pakistani government should create a better environment and gain the trust of investors to keep the economy running smoothly. Better policies should be made quickly, and the main focus should be on increasing exports and decreasing imports. Both the opposition and government must also realise that political stability is crucial for reviving the economy.
Khalil Mahesar
Sukkur
Published in The Express Tribune, December 8th, 2022.
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