When the Asian Development Bank renews its resolve to assist Pakistan in various sectors, it also points out many crucial issues facing the nation, including lack of good governance, uncertain security situation, under performed agriculture sector and falling exports. The bank sees infrastructure, roads and railways, ports and energy sectors as potential targets for foreign investment. However, investment is not an issue, but governance, security and agriculture. It is yet to be seen how seriously the government takes the advice of the donor agency, but the fact remains the issues pointed out by the bank are chronic in nature and least priority in the government plans. One fails to understand when energy crisis continue to haunt industry, exports are falling, security situation is at the lowest ebb and the country still depends on foreign loans, how credible are the claims of a strong economy. The ADB chief has met Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar and discussed development priorities and challenges facing the economy. The government has yet to show its performance in the field of structural reforms and macroeconomic stability. The security threat to the foreign investment cannot be denied, but good governance and agriculture sectors are such fields where the government can prove its mettle.
In the current situation, the government takes one step forward, but goes two steps backward. The challenges before the government are big, but its abilities are limited and here starts bad governance. So far, every government effort to enhance tax revenues has backfired. The imposition of 0.6 percent withholding tax on bank transactions of over Rs 50,000 has brought the banking industry to its knees and withholding tax on the sale of property have destroyed the real estate business. Pakistan has recently completed over$6 billion loan programme with the International Monetary Fund and is looking for further loans with every passing day.
As a matter of fact, international donor agencies are a form of new colonialism which control finances and sovereignty of countries by remote control. Therefore, running the economy on the basis of foreign loans should not be an option before the government. The current efforts to achieve higher economic growth and macroeconomic stability on the basis of foreign loans is only sinking the nation in quicksand. Pakistan has already agreed to five-year country partnership strategy programme of the Asian Development Bank which is going to end in 2019. During the last three years, the government has already received $1.5 billion for upgradation of infrastructure and institutional reforms. Until the government takes bold decision, loans will not help the country rid of the economic woes.
