Stop-gap, what?
It seems a Sherlock Holmes deal is being cut with the IMF. The coalition government after sabotaging all the economic indicators within a span of one year, owing to its inability to stay afloat, has finally penalised the masses with new taxes of Rs215 billion, which comes as a burden especially on salaried class. The revised Finance Bill has capitulated on its earlier scheme of $100,000 asset-whitening scheme, and agreed to raise the energy tariff base by 33%, sending prices skyrocketing to the next orbit. Last but not least, the new measures despite promising foreign exchange regulations and tightening monetary policy has assessed the rate of a US dollar at Rs308, which literally is not a healthy sign.
Alas, it is hoped that the IMF will nod to release $2.6 billion under a stand-by arrangement, to save the $6.5 billion Extended Fund Facility (EFF) which expires on June 30. If the stop-gap tranche comes our way, it will only be a period of respite for those at the helm of affairs, boasting themselves at the end of their tenure, and that too at the cost of new economic woes to the masses. Inflation is officially registered at 38% and is in an upward spiral, as there is no control of the government on micro-economics. An economy under siege by hoarders and black-marketers has left little space for people surviving on daily wages and salaries. To what extent the mini-budget that has set a new target of 3.5% GDP growth after revising the FBR revenues to Rs9,415 billion will come full circle is anybody’s guess.
The bottom line is that the economy is not performing. It is strangulated and has lost the confidence of the masses, especially the expatriates. The slump in remittances is a case in point, and one is not sure how the newly-launched ‘Economic Revival Plan’ that eyes an FDI of $100 will work in such a dismal scenario. What is needed is to breathe in a new lease of life in the economy by perpetually putting to end the fleecing decorum in vogue. Pakistan’s ruling strata must come under stringent austerity by slashing perks and privileges. No point in fooling the masses with new budgetary gimmicks.
Published in The Express Tribune, June 29th, 2023.
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