Home Views & Opinions What is wrong with our economy: Way forward?

What is wrong with our economy: Way forward?


There has been lot of hue and cry in the social media about the ever increasing prices of daily consumable items but state failed to control the prices due to absence of proper mechanisms and machinery. Although print as well electronic media in their talk shows have been highlighting the difficulties being faced by people living below poverty but instead taking preventive measures it was taken lightly and finally ignored by saying it is natural phenomenon all over the world. Huge protests and demonstrations by PDM and other political parties against soaring prices of daily use throughout the country are taking place and gaining momentum .The economic team of the government has miserably failed to deliver as a result people are now on the streets. The main reason is that policies are made suiting to elite and businessmen; it has nothing to do with common man. The leading economists of the country are criticising the government on their economic policies but no notice is being taken by them. Prime Minister more than once has acknowledged that there is “Mahangai” and soon these hard days will be over and there is no need to “Ghabrana nhi hai” have lost its meaning. How can the government improve economic condition of the country when it is taking dictation from IMF? They always insist to raise the prices of fuel, power, and gas and increase the taxes and reduce the exemptions. Such acts further bleed the people and under this program poverty and inflation will always increase.
The economic team of Prime Minister was pressing hard to go to IMF failing which country will collapse. Now PM should ask his economic team that having accepted their advice to go to IMF why country has plunged into further economic mess? An ordinary person also now understands that going to IMF means further inflation and poverty because with IMF loan there cannot be any relief to common man as their precondition is to increase the taxes, no subsidies, and increase in power and gas tariff. PM unlike other prime ministers of country was known all over the world being top cricketer of the world, he should have undertaken foreign tour and sought help from the countries and they would have willingly helped him, he failed to draw benefits of his worldwide fame and popularity. He should have floated Bond’s instead going to IMF. The nation would have extended full support in building new Pakistan in saying good bye to IMF but he has disappointed all his well wishers. Except for year 2004 to 2008 during Gen Musharraf rule Pakistan avoided going to IMF and pace was set to stand on our own feet but the new government spared no time to go to IMF to get loan on their terms and conditions and it kept piling up.
As long as we do not adopt systematic cost benefit analysis we build roads and bridges on the whims of the leaders to get kick backs and benefit contractors we are wasting resources. In recently concluded Tokyo Olympics Pakistan Olympic squad had 8 athletes and 24 officials no medals only one sportsman shone in Javelin but without government support the best example of best economy. IMF representatives placed on key appointments in Pakistan regularly monitor state activities and submit report to IMF to prepare conditions based on feed back for extending loans. At present we are begging and negotiating $6 Billion loan where as we are wasting over roughly $ 5 billion in importing luxury goods. SBP reduced the interest rate from 12.5 percent to 7 percent as a result the elite imported luxury cars worth billions of dollars, so is the case of mobile phones roughly spent over $2 billion in importing mobile phones. Government spent roughly $4 to 5 billion whereas we are begging IMF loan of $ 6 billion in 3 years. Why can’t we ban import of all luxury goods and no one should be allowed to import cars beyond 1300CC, likewise no import of cell phones. IMF agenda for the developing countries revolves around how to bring poverty, unemployment and Mahangai. CD is again increasing. It is heartening to note that government has signed a good agreement with IPP’s if we implement it we may get rid of Circular Debt. Lowering rupee value appears to be intentional as deposed by governor state bank to give benefit to overseas Pakistani’s who get more Pakistani rupees against their remittances. Some people attribute poor economic condition due to Afghanistan crisis, what is the motive? Following measures can improve our condition.
a. Remove all the Para shooters who are repeating same rhetoric that they are under pressure
b. Immediate ban on high capacity vehicles
c. Ban on mobile phones
d. Any item which is manufactured in Pakistan to be excluded from import list
e. Revamp taxation system and economy be documented.
f. Real assessment of real state
when someone falls sick the person goes to doctor and gets medicine. If the patient does not get well he changes the doctor, therefore since present economic team has failed to deliver therefore it should immediately be changed to avoid collapse of total economy.