I am not for a moment suggesting that fiscal deficit is the only yardstick for economic health.
CHENNAI: I write with reference to your report of November 14, “Pakistan used terror as hedge: Clinton”.
Despite all the doomsday scenarios presented about Pakistan by the local and international press, Pakistan has a surprisingly resilient economy. Despite the battering its economy has taken by the flood and worsening law and order, our fiscal deficit remains 4.7 per cent — compared to India’s 5.2 per cent. Of course, I am not for a moment suggesting that fiscal deficit is the only yardstick for economic health. But it certainly is an important one. Pakistan’s main problem is returning the economy back to higher growth while keeping inflation in check. (Not the type of synthetic growth the economy went through in the Musharraf era.) Bringing in foreign investors is another problem given the battering Pakistan’s image has taken overseas over the last two years. It would help if the military and intelligence agencies keep this in mind before tapping into their ‘strategic assets’.
Pakistan has the ability to play with the regional big boys if only it were to focus on growth and not the military. Rehman Malik’s embarrassing request at the international lenders’ meet to write off Pakistan’s external debt of $50 billion was almost a body blow for Pakistan’s chances of raising money to tide over the current crises. Fortunately Dr Abdul Hafeez set the record straight and told the members that Pakistan was not seeking debt write-off.
Irfan R
Published in The Express Tribune, November 17th, 2010.
