Inherently skeptical analysts

LAHORE: Finance Minister Ishaq Dar, in his recent article in this newspaper, “Pakistan’s debt: putting record straight” (February 1) has coined the phrase of “inherently skeptical analysts” for those economists who project the ‘economic doomsday scenario’ on the basis of exponential debt stock. The article covers all angles of related issues of the debt’s external and domestic proportion, repayment strategy and falling financial burden on Pakistan’s economy. The main thrust of his argument is based on the present level of external debt being $57 billion against the figure of $73 billion continuously being propagated by independent economists. It was further elaborated that if compared with the figure of net external debt by taking into consideration built-in reserves, the level came down to $39 billion at end of June 2016 compared with 2013. The article has also explained that that present yearly outflow on account of debt obligations is not a matter of concern.

It is hard to believe the diatribe of independent economists who say the government is fudging the figures, as the World Bank, IMF, Asian Development Bank and other ranking agencies are showing satisfaction about the economic indicators in their comments and statements on Pakistan’s economy. It is beyond doubt that Pakistan’s economy is facing the challenges of falling exports, low inflow of foreign remittances and slow economic growth that is putting a burden on the common man, which need the immediate attention of economic managers. The detailed discourse of the finance minister requires objective analysis from the independent economists of the country so the impact of the present economic policies may determine the future course of action and provide guidelines to put the country’s economic house in order.

Zafar Iqbal

Published in The Express Tribune, February 5^th, 2017.

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