Developmental cut?
Budgetary allocations for development live and breathe in a mirage. The axe is first to fall on them in case of a financial crunch. The same is evident as the government decided to slash PSDP by a quarter. Notwithstanding constraints, this is unbecoming of wise leadership as nothing exemplary was done to cut the non-developmental expenses, and the much-trumpeted austerity measures are nowhere in sight. The Planning Commission’s sagacity to reduce the PSDP to Rs600 billion, and then channelise the same in a contested manner is questionable. The reduction of Rs200 billion this year i.e. 25% of promised funds is in replication as last year too it was severed by around 40%, sending down the message that development is an issue subjective to whims and wishes.
Cuts are taken by governments in times of exigency but the prescription must substantiate a reason. With flawed policies at work and no measure underway to tighten the auxiliary expenses that go on to pamper the elite’s perks and privileges, taking a slice on people’s welfare-oriented projects is untenable. The country’s infrastructure development is already underfunded and the priorities are wayward. Coupled with this is the disaster that the nation witnessed in the form of flash floods in 2022, whose losses are estimated at $18 billion and will take a decade to buckle up. In such a scenario, tweaking down the allocations is no solution and something serious must come to redress the despicable situation.
Some of the basic statistics of the economy are, however, depressing. Trade deficit hovers over $20 billion and the current account deficit is shattered to the core, which has swelled to $5 billion, along with a super-inflation that is above 45%. While the government has assured that it will not touch on areas that are vital such as building water resources, education and funds for dilapidated regions, the implementation matrix is quite obstinate. Pakistan is in need of an uncontested developmental package that goes on to buoy the lifestyle of the people and create ample jobs. Fudging with statistics is no way out.
Published in The Express Tribune, April 20th, 2023.
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