Asian Development Bank (ADB) President Takehiko Nakao has expressed the apprehensions that the current political crisis in Pakistan can damage economy. In a meeting with Pakistan Prime Minister Nawaz Sharif, he appreciated the steps taken by the government to devise macroeconomic policies and contain inflation to a minimal level. He says that there is a need to further improve foreign exchange reserves while structural reforms in the energy sector will assure uninterrupted electricity supply to the consumers. The bank is a partner in the energy sector in the country.
The economy of Pakistan has been in a shambles for the last many years and a bumpy road is ahead of the present government not only to resolve political crisis, but also economic crisis. On another note, Pakistan Tehreek-e-Insaf chief Imran Khan and Pakistan Awami Tehreek chief Dr Tahirul Qadri are adamant to stay in Islamabad until the resignation of Prime Minister Nawaz Sharif. Unfortunately, all the political parties have shown very unserious attitude so far to the utter disappointment of the nation.
Nakao also indicated that Pakistan is rich in human and natural resources, as majority of its population consists of very young people and a lot of natural resources have not yet been taped. Pakistan is also situated at a very strategic location with investment opportunities in agriculture, textile and sports goods manufacturing sectors.
The international donor agencies have their own interests and agenda for which they offer attractive loans and financial schemes, but this is vicious circle of economy in which the loan amounts are inflated to the extent that the governments in the third world countries take loans from the same lending agency to pay its debts.
It is also a fact that no economy in the world can survive by keeping itself in isolation. Therefore, the national interest should reign supreme in all kinds of deals with the World Bank, Asian Development Bank, International Monetary Fund or any other donor agency to avoid any severe repercussion. Pakistan is already drenched in billions of dollars foreign loans and those are piling up. No doubt even the developed economies get loans, but banks and donor agencies should not be allowed to act like colonialists. The Asian Development Bank supports energy sector in Pakistan, therefore, it finances hydropower projects and gas-fire power plants and also assists Pakistan to upgrade transmission and distribution system. Pakistan is the founding member of the bank and have received over $24 billion loans besides assistance in many other projects. The need is we should keep our house in order and the loan money should not go to oblivion.
