According to analysts, the recent depreciation of Pakistani rupee has brought the economy to its knees as the macroeconomic stability the country achieved during the last four and half years have lost. The economy has been reverted to the position it had in 2013 with additional loans of $45 billion. The desire of economic recovery has lost somewhere in the middle of political chaos and economic disturbances during the tenure of the Pakistan Muslim League-Nawaz. The policymakers of this country not only lack ability to look into the future prospects of the economy, but also lack capacity to face challenging of the modern economic world. The analysts firmly believe the government allowed the depreciation of the Pakistani rupee only to comply with the conditionalities of the International Monetary Fund and qualify itself for a fresh bailout package to avoid a possible default. During the last four and half years, the burden of loans has increased from $45 billion to $90 billion which is expected to cross $100 billion in the next few years. In the absence of a mechanism of accountability, the political leadership, bureaucracy and all others who matter freely work on their will to spoil the broth.
The government has been explaining for the last couple of months that it would not seek another bailout package from the IMF and Adviser to PM on Finance Miftah Ismail, has also dispelled the impression that the government is seeking any IMF assistance. However, the speed with which the foreign exchange reserves are depleting, trade deficit are on the rise and industry is struggling to survive, the government is expected to take up the issue of new IMF financing in April during World Bank-IMF spring meetings in Washington for a makeshift remedy. The policymakers always look at one side of the situation and ignore the other, and leave the arena by adding more troubles to the economy. Only a few months had been left for the mandate of the current government and there was no need to take suicidal step such as devaluation of rupee. However, the depreciation of rupee will have long standing effects on the overall economy and they are the people who would suffer shocks and aftershocks of the emerging situation. Still there is time for the government to reverse the decision of the depreciation of the rupee and stabilize the economy not on the basis of loans and grants, but stimulation of the industrial and agriculture sectors growth.
