On the right path

It is heartening to hear — and that too from an authority figure — that Pakistan “has come out of the financial crisis with the help of friendly countries” and “uncertainty in the economy has ended”. The assessment on the health of the economy has been made by SBP Governor Tariq Bajwa during a speech at a private university in Lahore.

The central bank governor is all praise for the government which, he asserts, is on the right path and is capable of meeting all economic challenges. The SBP chief mainly spoke of the current account deficit that stood at $18 billion when the PTI-led government took over in August 2018. Coupled with a chronic budgetary deficit crisis, the mammoth current account deficit was serious enough to expose the government to the risk of default on its foreign payments.

But full marks indeed to the incumbent government, especially Prime Minister Imran Khan whose successful diplomacy has at least given Pakistan a much-needed breather on the economic front. Prime Minister Imran Khan carries a Mr Clean image which has been instrumental in convincing friendly countries — like China, Saudi Arabia and the United Arab Emirates — to approve economic bailout packages for Pakistan. Latest and the most helpful to talk about is the economic assistance from Riyadh which has come in the form of a huge $21 billion worth of investment over a period of five years, apart from the $6 billion soft loan and deferred payment facility agreed earlier. The assistance from these friendly countries has placed Pakistan in a better bargaining position in bailout talks with the IMF.

Adversity brings the best out of some. Imran Khan is the best case in point, and his cricket career is the best evidence in the context. However, his job is not done yet, and he is sure to know that despite signs of improvement in the state of economy, there is no room for complacency as he is still to tackle chronic economic challenges that are a plenty.