Pakistan’s economic woes intensify

Apart from the impacts of global economic downturn, Pakistan’s intensifying economic woes historically depict to be cyclic—taking one step forward for a while and no sooner it reaches to a breakthrough point some mishap occurs leading to political turmoil, throwing the economy back to two steps backward. But this time it seems breaking all record, as almost everybody holding some position in the society appear to be in great hurry making hay while the sun shines, least caring that it is fast pushing Pakistan financially to a stage of unsustainability. In talks with a Pakistan delegation in Washington, the IMF has approved additional financing for Pakistan, which has taken the total loan up to US $11.3 billion. The new pledges are intended to bridge any gap that may arise if funds pledged to Pakistan at a donor's conference in Tokyo in April do not come in on time. The immediate problem has thus been resolved; the longer-term crisis grows. The IMF deal of course means Pakistan's debt burden continues to mount. The same holds true in the case of loans taken from other sources. The situation is largely unsustainable. A glance at the budgetary pie shows how debt eats away at our resources. We simply cannot afford to dish out an ever-increasing slice to it year after year, decade after decade. The crisis Pakistan faces today is largely rooted in its economy. The socio-economic slide has contributed to the immense sense of grievance and acted to fuel the militant fires. The rising rate of crime, the growing sense of insecurity, the flight of capital, for which another Forex firm, Zarco, is now being investigated, and the damaging human brain drain are all tied in to this factor.To escape the debt trap, we need more resources or drastically cut our expenses instead of the current spree of drawing benefits with arrears by all those restored, hundred percent increase in salaries and perks, after retirement phenomenal increase in benefits and privileges, huge wastage due to negligence and ineptness besides the loot and plunder by all and sundry running into trillions. The issue is can our economy any longer sustain such weird attitude of persons exercising authority, especially when generating resources has it limits.The fact that agriculture has still to be taxed, that many industrialists still pay only the most nominal taxes, while the salaried class bears alone the major burden of tax deductions offers one answer. Our parliamentarians must look beyond their own interests and look at those of their country and its people. In the past, calling upon Pakistanis based abroad to send back remittances has proved the most effective means of raising finance. This can be attempted again. The vast Pakistani diaspora has time and again proved it is both extremely patriotic and generous. But it would be unrealistic to call upon it to send money home in a climate of continued political instability. The government must focus on building the confidence needed to bring in investment and halt the continued slide of the rupee against the dollar. Pakistan's potential for exports has not been realized. There should be some assessment too of why we have lost our status as a major ship-breaking centre and why other spheres in which we once competed with the world have slipped.