
KARACHI:
The recent International Monetary Fund (IMF) Standby Agreement for $3 billion is the 23rd such package that Pakistan has taken from the institution since 1958. The country can never get out of the economic quagmire without major structural reforms. For decades, we have been witnessing the same rhetoric that this will be the last such bailout, but populist measures and abuse of power continues.
A country facing the threat of an economic collapse cannot afford to pay its elites’ ostentatious lifestyles irrespective of the budget deficit and huge debts. Former Indian Prime Minister Narasimha Rao supported Manmohan Singh in carrying out major structural reforms in agriculture and industrial sectors as well as others instead of bowing to populist demands. India sought the US’ assistance to set up the Indian Institutes of Technology. India adopted its constitution as early as 1949-50 and was no longer a dominion of the UK. It took immediate steps to undo remnants of the British Raj, reformed civil service and focused on education, health, etc.
The state adopted austerity with an effective internal revenue system, collecting revenues through direct taxation. The state ensured that there was neither flight of capital nor brain drain. We on the other hand preserved the legacy of the Raj with all its ills. Quaid-e-Azam laid the ground for a democratic welfare state without corruption and nepotism, yet the country continues to face many threats and challenges. The only way out of our existential crisis is to adjust our priorities in the favour of the masses. Local industries must be revived, and merit should be the only criteria for recruitment in all institutions.
Malik Tariq Ali
Lahore
Published in The Express Tribune, July 15th, 2023.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.