A dose of bitter medicine

Suspension of US aid under Kerry-Lugar bill may force Pakistan to find other means to generate the resources it needs

The news, conveyed to Pakistan through the US ambassador to the country after a visit to the region by senior US officials does not appear to bode well. Islamabad has been told that the Kerry-Lugar Bill, under which Pakistan is receiving $7.5 billion in aid is unlikely to be renewed after September 2015 when it expires. Pakistan had been relying heavily on aid, provided through this bill to meet its financial needs. A double blow has come in the fact that Pakistan has not been able to persuade US investors to part with the $5 billion that it had hoped to gather to build badly needed dams, including the Diamer-Bhasha project. Instead, only vague promises have been made.

So, at first sight, things do not look good. But, like a dose of bitter medicine, the news may eventually work in Pakistan’s favour. The country has for far too long been dependent on handouts in order to survive. Its reliance on the US in particular puts it at peril in terms of determining policies independently and chalking out the route best suited to itself. The pulling out of aid under the bill may benefit it by forcing the country to find other means to generate the resources it needs. These can come through a more efficient revenue generation system, based on improved tax collection and other means. The question of agricultural tax arises once more. There are also other means the country can use to place badly needed funds in its depleted kitty. Cutting down on unnecessary administrative expenses is one obvious way. Others have to be found.

The crucial message here is that we must work to gain the sovereignty we so badly need in order to make our own place in the world. We cannot hope to rely permanently on money handed out by other powers. Pakistan, as a nation, has plenty of resources to generate what it needs. It must work towards making this possible as quickly as is feasible so that the problem we face today goes away and does not return at any time in the near future.

Published in The Express Tribune, October 16^th, 2014.

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