Struggling economy

Pakistan's economy is in the woods. With a growth projection at 2.68% of GDP, it is struggling as exports have taken a nosedive amid fears of further depreciation of the rupee against the US dollar. A survey by Ipsos has painted a more dismal picture as it says that the confidence of the masses is withering, and an overwhelming number of people do not see any hope in the economy picking up.

The survey also mentions that people's confidence has dropped to pre-Indo-Pak conflict levels, as things have once again started deteriorating and the hope exhibited in the May duel is sliding away. It is registered that only 16% are confident about investing in the future, and only 18% believe the country's economic condition could turn around.

The independent survey has come on the heels of two major revelations, signalling that the economy is on the edge. The SBP says the "current economic growth model could not sustain a population of 250 million"; and the SIFC has also pointed out that there was "no growth plan", suggesting the need for an export-led growth model. This is a serious outcome and deserves some brain-storming in an unbiased manner, rather than jockeying up the indicators on a flimsy political premise. It is also a fact that more than 55% of the populace lives below the poverty line, and their daily income is less than $3 (or less than Rs1,000). At the same time, a majority lacks proper sanitation, healthcare and education facilities, and the unemployment rate too has risen over 7%, making it one of the highest in history.

According to the survey, purchasing power of 89% of households is shrinking, given the unbridled inflation. Similarly, only two in 10 people feel secure in their jobs, and social mobility too has taken a backseat with brain drain becoming the order of the day. Recent reports say more than 2.3 million Pakistanis left for greener pastures in the last few years. Last but not least is the pestering corruption enigma as the IMF too is now taken aback with the fudging of figures and lack of accountability.