As I am not an economist or a financial analyst, I cannot tell you what the future of Pakistan’s economy will be. Nor do I know if the current economic policies will finally save Pakistan. However, I do know that whatever loans we receive come with strings and certain dictatorial (and unfavourable) policies that must be followed before we can benefit from loans. These policies often take a toll on a country’s growth. Moreover, this affects the ability of the government to pursue policies that lead to the betterment of that state. The most pressing issue is that these loans must be paid back with interest.
When the annual budget is released, a major portion of it is earmarked to pay off past loans. Won’t taking all these loans just swamp Pakistan in continuous debt. Is it really worth taking these loans? Unfortunately, yes.
In a country receiving tax just from eight per cent of its population, the government really has no choice. Yet, here is the bright side, these loans can be invested wisely, just like the OSAP University student loan I was able to take as a student in Canada. The loan allowed me to attain the same education and opportunities as anyone else. Thus, one’s financial background did not limit one’s authority. With sufficient hard work one could easily attain the career by which these loans could be paid off, and far more would be made. As it is, education helps build a country in a way loans never can.
Similarly, Pakistan can wisely invest in these funds, such as utilising them to overcome the energy crisis and promoting business opportunities in order to overcome its turbulent financial past, so as to generate more income and break free of the cycle of loans.
Published in The Express Tribune, May 14th, 2014.
COMMENTS (6)
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@self interest. The article offers no real advice. What are other options? Foreign loans have become a term attached more than emotions than financial wisdom, and this article is an example of that. The govt has $12 billion in assets and it needs $11 billion to build bhasha diamir dam. Lol, isnt it irony.
No govt can track down tax evaders because the society as a whole is tax evader. What are other available options? Lets discuss.
@Kaleem: That's a shame because you missed an interesting article.
As I am not an economist or a financial analyst, I cannot tell you what the future of Pakistan’s economy will be. Nor do I know if the current economic policies will finally save Pakistan.
I stopped reading after these lines, sorry.
Your article presupposes that the sitting government or the previous one or the one that will come, have the country's interest uppermost in their minds......and that is your basic error. Need I spell out who is, was and will be uppermost in their minds ??
Pakistan requires a 'systemic change' that Imran Khan is talking about. These loans, it is feared, will be squandered and very little will be utilized to develop meaningful projects. A lot of money will go into tax emptions and subsidies and the purchase of unnecessary federal government, non-essential expenditure. We can also expect an increase in indirect taxes with a lot of verbose jugglery in assuring the citizens that all will be well. Salams