During the last 79 years Pakistan has lived on economic crutches in the form of loans. It has been a normal pattern that on the promise of additional loans in the form of a package the overdue instalment is paid. This has resulted in a national cost burst where the cost of everything has exponentially sky rocketed. More importantly in the spheres of electricity, water, gas, flour, and also medicines , even the life saving drugs.
Pakistan has become baptised and depend on other sources like IMF and World Bank. It’s now time to learn and understand that the world very rarely fixes anything on macro scale. This instead happen via individual accountability, personal resilience, rather waiting for the World to come and rescue us. Definitely world is not going to fix us. No agencies will stop electricity thefts nor anyone will enforce merit against nepotism in our institutions , people have to do themselves.
If people of Pakistan want to convert the country into a liveable country, there is only one way , that is , Build Build and stop borrowing.
One has to gauge the price and collateral damage in borrowing money. It is repayed with interest at a perticular time.
As per estimates we spend 50 percent of federal revenue only on debt servicing. This mean, money that is suppose to go to education and health sectors or building dams is drained out in these repayments.. Whatever, we borrow today, our next generation will have to pay double the amount.
Our economy get stressed when we see our lenders IMF and World Bank demand more interest from us in the capacity of risk premium, as they see us at high risk .This is the prime reason we pay 2/3 percent more interest then what India and Bangladesh pay. Similarly investors are also shy and hesitant and stay away because of electricity and gas price hike.
Also when policies changes every two years nobody is ready to take risk. This certainly have negative impact on our economy.
On the contrary our people have to pay the price of borrowing. In order to pay back loans taxes and tariffs are raised. Import of LNG and oil make the country expensive, as when dollar rises, rupee devalued , resultantly we have to pay double the bills. It is very unfortunate that
when borrow with the intention to subsidise wheat, the benefit of such a step never reaches a poor.
Following are the four pillars that must be practiced to build the country:
1) It is a universally accepted fact that 18 to 20 hour load shedding not viable to operate / run an industry . It is suggested to start local generation of power at the full capacity which is less then 50 percent currently. Rooftop solar for homes and shops and also street lights model that Mr Malik Riaz successfully adopted. It will make a difference.
Important strategy is to make an energy policy
for straight 10 years which no new government can change. This will take care of the policy failures.
Perhaps this will also direct the way to cheap energy, create jobs, increase in exports and so increase in earning more dollars instead of borrowing.
2) keep an eye on water reserves. It is the security for food and life of people. The figures depict the severe decline in per capita water from 5000 to under 900 cubic meters. Wakeup call to build more dams , small reservoirs to store water. In urban areas 40 percent water is estimated as wasted via leakage in city pipes.
From water abundant in 1951 , today we live in water stressed environment . Authorities not willing to work on it..Dr Noman Ahmad’s extensive research work published in book form
” Water Supply in Karachi: Issues and Prospects “, in the year 2008 identified the water problems in the mega city of the country and when analysed the issues later, found no improvement and unfortunately are still the same even today. Water security is food security hence economic security. In the absence of which a country is unable to feed it’s people, unless borrow to import food.
3) Institutions are supposed to be an economic machinery in any country. Efficient institutions help progress the country while weak institutions give way to delays, bribe and above all a phase of uncertainty.
This points towards the urgent need to address the issue of Devolution. Islamabad alone cannot take care of all the districts. It is advisable to transfer funds to districts and power to use for schools, BHUs, water and infrastructure. Merit should be the law.
4) The citizens, the people of a country are it’s vital strength. By their hard labor on daily basis, community care by individuals help the society remain stable. Farmers, workers produce food crops , goods of daily use and service centers, for example banks provide services to people.
However, skills play a greater role.. people with special skills are an asset to a country. To build dams engineers , IT specialists, solar technicians, hospital personnel all are important and play their role in the progress of the nation.
Country with large number of skilled labour borrows less because it earns more.
Our generation has grown witnessing tragic absence of unity among it’s people. We have a plateful of problems to handle and solve , and on top of that we are habitual in wasting precious time and energy in too much of house fighting, viz.Punjab vs Sindh, Federal vs Provinces, one party vs another.
True, one can disagree on politics on issues but not on policies made for the future generations in the form of development, such as water resource management, energy, education, health and tax reforms. No country can ever flourish and develop untill they unite on policies and reforms benefitting the common man.
Our neighbouring country India is strong because they decentralised power and stayed united when it comes to national goal and interests.
We need the same spirit and a kind of commitment of nations like South Korea, Vietnam, Taiwan, Cambodia…these countries were poorer then Pakistan in 1960. Bangladesh was called the basket case in 1971. They chose to build. Today they export and we borrow.
They chose to build .Today they export and we borrow.
To conclude we clearly have two options before us :
Option 1) Let the history repeat: Take another loan, raise tariffs again, watch industries leaving and so our talented youth ,our asset .Next year again see the same cycle repeat.
Option 2) Choose to build : Initially take and strictly implement a plan for 10 years of hard and difficult reforms. Develop power, fix canals, education and health sectors. Devolve power, guarantee tax collection and above all ensure delivery of services ( it will ease the tax payment). Practice merit, say no to nepotism to let the institutions run efficiently and smoothly.
It will be hard and difficult in the beginning, but we have to own it.
At 79, the bill for 79 years of borrowing has arrived.
Remember, the World will not fix us.
We have to fix us ourselves , the multiple problems that are of our own misdoings by sheer sincerity.
BY BUILDING BRICK BY BRICK !!
