There is not a shred of doubt that the recent developments in Islamabad have affected the country’s economic progress, causing direct and indirect, measurable and immeasurable losses.
The sit-ins, organised by Imran Khan’s PTI and Tahirul Qadri-led PAT, have forced the cancellation of a visit by Sri Lankan president before casting doubt on the planned arrival of the Chinese head of state.
The nature of the Chinese president’s visit is as high-profile as it gets and the slightest of reshuffling in plans would strengthen hands of those international forces that do not want to see close ties between Pakistan and China. Furthermore, Chinese president is set to visit India, which could be interpreted as further isolation for Pakistan.
During the visit, the Chinese head of state was expected to sign several defence and economic pacts.
Pakistan has been negotiating a deal to acquire four submarines besides purchasing two squadrons of JF-17 Thunder multi-role aircraft, which is the joint production of Pakistan and China. Additionally, agreements were expected to be signed for 14 power sector projects that would have the potential to generate 10,400 megawatts of electricity with active Chinese assistance.
At a time of a severe power crisis, the deals are priceless.
“The international image of Pakistan has considerably been shattered,” the federal government responded in the Supreme Court of Pakistan. The fallout has also shattered confidence of investors, it added.
The government has so far estimated overall losses to the economy at Rs547 billion. Out of the total, Rs228 billion have been estimated on account of 4.3% depreciation in the value of Pakistani rupee against the US dollar. Another Rs319 billion was estimated due to decline witnessed in the stock market. However, the Karachi Stock Exchange has now entered the recovery mode on the back of reports suggesting that the contesting parties have agreed to resolve the issue through dialogue.
The government has also claimed that political uncertainty has also adversely affected financial markets and foreign currency reserves have declined to $13.52 billion from the $13.926 billion in the week that ended on August 15.
It comes as no surprise that protesters have rendered the government machinery dysfunctional. The Pak-Secretariat – the seat of civilian bureaucracy – remained almost closed for about two weeks. Important matters remain unattended and barring emergency nature no other files are being entertained.
Since August 16, less than half of the Federal Board of Revenue’s workforce has been able to attend office that is also located at the Constitution Avenue. However, it would not affect revenue collection as the work in field formations is going on smoothly.
The additional cost of security has been estimated at Rs357.6 million. An amount of Rs226.8 million has already been released, while ministry of interior has requested Rs130.6 million additional funds as of August 29.
The damage to public property has been estimated at Rs5 million by the Capital Development Authority. The equipment of state-owned Pakistan Television was also damaged while protestors burnt a police vehicle besides damaging 17 others. So far, 717 persons have been injured including 202 police personnel and three protesters also lost their lives, according to official estimates.
The Trader Association of Islamabad has claimed Rs10 billion losses – a figure that seems highly exaggerated. However, the government machinery has come to a standstill.
Schools have remained shut with children losing valuable learning time. Police forces from Punjab and AJK have been temporarily using the schools’ premises.
The fear is that the government will try to hide behind the political turmoil to hide its inefficiency on the economic front. The government has set ambitious economic targets for the current financial year and many of these cannot be achieved.
However, protestors seem to have given an excuse to the government.
International financial institutions that were somehow ready to deal with the government have, for the time being, taken a back seat and are waiting for a resolution of the dispute.
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Published in The Express Tribune, September 8th, 2014.
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COMMENTS (25)
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verall we have observed a big change in the politics of pakistan due sit in of PTI not PAT
overall we have observed a big change in the politics of pakistan due sit in of PTI not PAT
The most telling side effect is waste of time and public money by these fraudulent persons inside the Assembly building. Their dharna must be removed as they are ghuspatye and riff raff who are here through rigging. They are all involved in some crime one way or the other and they are desperate to avoid indictment. That is why the people are there outside who represent the nation to kick these criminals out.
@Jibran: you know this man became Rana when PML N rigged and won.
If JF-17 aircrafts are made in Pakistan, why does it need to purchase from China.
"Pakistan has been negotiating a deal to acquire four submarines besides purchasing two squadrons of JF-17 Thunder multi-role aircraft, which is the joint production of Pakistan and China."
A hog wash!
@ProudPaki: Yes! we did not sell out to an Umpire! We did not sell out to a script!. We did not sell out and offer you zero taxes. We are the proud PTI and we are proud Pakistanis. We will not accept 33 billion in Chinese Loans to develop our country's nuclear power plants and coal power plants. We did not lie or break our word (unless we convenient) either
Real slow progress is of the decline in minting corruption money through commissions
@Ranjha: I prefer to believe what independent Western observers said about Pakistan's elections. They said that despite instances of rigging that go on in all 3 rd World countries, the elections were largely fair and free. I never said they were perfect but I am sure the Westerners and Europeans are a bit more objection than our people in making claims. The whole issue as I see it is that it will take several cycles for democracy and the system to mature in Pakistan. I just don't believe in 3 rd World quick rich schemes or 3 rd World fix government overnight schemes because there is no shortcut to hard work and effort. We need to work within our system and build a better nation through long term thinking about strengthening institutions. Just so you know, I was also a former PTI member before this dharna nonsense. I now see Imran Khan has emotion but not the maturity to lead a political party. He has done great work for the nation as a philanthropist and spokesman but he can't accept he is wrong on this point. He sounds like just another tired politician with the same crowd around him. The only decent fellow around him, Javed Hashmi is gone.
Looks like all the economic plans and progress expected in last 60 years was to carried out last month! Blame everything on dharnas. Lame.
Slow down progress ? what progress ? It takes nine years to fix an electrical shortage problem ? They all need to be sent to Adyala camp. The Shareefs ,and Bhuttos and Zardaris ...one and all .
what about trillions of dollars these corrupt politicians have looted over a few year ?!!
What progress? There wasn't any, other than corruption, nepotism, lack of governance, and political victimization. And this progress continues unabated.
Here we go again. Initially, I ignored the news item, but then I noticed the "Shahbaz Rana" as it's author, and then everything about the credibility and the authenticity of this news and the numbers became apparent. I'm just amazed by the flight of his imagination.
Apparently the progress and performance of Pakistan and this current government was based on these three weeks?
@Humza:
If any other party was subjected to the same blatant rigging as Non League heaped on PTI, even if ten people show up at dharna to ask to address their grievances, so be it.
Ahhhh, and please don't say no dhandli took place--where there is smoke, there is a fire. Let the truth come out of the voting bags, like a ginnie out of the bottle, in all constituencies in Pakistan, including KPK!
Neither side cares for the losses. Government doesn't want a quick resolution as their claim of 5 demands acceptance was a BIG LIE.
No one talks about the thousands of people sitting on dharna who should have been working and contributing in economy but chose to sit on govt property. The amount and productivity loss due to non working of those people should be also counted in.
On top of that the money being spent to feed and give shelter to those people per day runs in millions as well.
Overall its pretty bad for the economy.
This loss will be very little as compared to the financial bungling going on within the government affairs - I really hope that we are able to raise our voices and concerns over the same.The loss as a result of these Dharnas are peanuts as compared to what the actual financial corruption is within the affairs of the state - incase this drive towards the change and a better Pakistan is successful such losses can be easily catered for with the help of better management of available funds and corruption free handling of affairs of the country - Allah bless PTI for making us realize how this Nation is being cheated within the hands of few people. This revolution has indeed been an eye opener for many - and InshaAllah in the years to come our future generation will remain thankful to this party for bringing about a change....
@Ranjha: If the any government caves in to the demands of a few thousand violent protesters, don't you think another disgruntled politician after Imran Khan will try the same thing? What message does it send to the world about Pakistan whenever any political leader with several thousand supporters can force the hand of a government? It would undermine growth, investment and stability. The key for the government is to refuse all PTI and PAT demands in order to prevent a repeat of this same scenario and send a clear message to the world that these type of protests will not undermine Pakistan's economy.
If bureaucratic activity is affected, that's possibly the best outcome of the sit ins.
I have never seen such bias reporting from any news outfit other that ET. Thoroughly disappointed. And what of the 200 billion dollars of the state in swiss accounts of corrupt officials? What of the money lost to Sharif Dynasty and its pons? Go report about that. Sold out media
ISPR statement smacked of bias. Government should not hesitate using force to cleanse the area of miscreants
This is truly worrisome. Non League should immediately accept PTI demands for a fair recount to avoid causing more damage to the Pak economy than its intransigence has already done.
Hundred thousands people are not representative of Pakistani nation while 1173 votes are a good sample to justify results. Survey is biased in itself while other figures are given by government and we know how it compile statistics. One thing is very clear, these Dhanas have exposed whole system.