Dismal story, again!

Finance Minister's remarks on subsidies sign off all hope of relief in staggering inflation for the masses

The caretakers have painted a dismal figure of the country’s economy. It seems there isn’t much room for manipulating statistics, as glaring debt and inflation are constants for time to come. It is noticeable that the interim set-up within days of assuming the mantle is openly expressing its haplessness in doing a job that many expected would be out-of-the-box in fixing the downslide. Finance Minister Shamshad Akhtar told the Senate’s Standing Committee on Finance that the economic situation was “worse than anticipated” and the government did not have “fiscal space” to provide subsidies. This signs off all hopes of any breakthrough in seeing a slash in electricity bills or the euphoria that fuel prices might take a dip in near future. Thus with price spiral ruling the roost, as sugar hit an all-time high of Rs185 per kg in retail, the days to come are miserable to say the least.

The apathy was squarely evident as the cabinet cut a sorry figure by saying that it is hoping in the largesse of the IMF to come up with any relief or subsidies for people agitating on the streets against exorbitant energy bills. Moreover, the finance guru stated that it had ‘inherited’ the Fund programme which is ‘non-negotiable’. She tried to qualify by pointing out that 70% of tax revenue was being spent on debt repayment, and the rest is peanuts on the table. Last but not least, a bleeding rupee against the US dollar has torpedoed the viability of exports, and has made business of the state a next-to-impossible task as remittances are withering and investors are in the woods by refusing to take a plunge at this hour of uncertainty.

The question that the nation is asking is: how have we reached this stage, and who is responsible for it? Why have 23 arrangements with the IMF not been able to kick-start our economy, and why is the non-developmental budget to this day laden with perks and privileges for the elite? It calls for dismantling the paradigm in vogue, and a fresh start by keeping the interests of the commoners in sight. Will anyone take the lead?

 

Published in The Express Tribune, August 31st, 2023.

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