The outgoing government would definitely leave behind a legacy of corruption and mismanagement if present state of financial and economic affairs continues to persist. The appointments on vital institutions are made on political grounds, which also leave a fair share of troubles for the next government. Unfortunately, politicians only concentrate on vested interests and have apparently nothing to do with the issues of national importance. The mandate of the current government is going to end in a few months, but financial, economic and political situation has started worsening day by day. The current government inherited meager foreign exchange reserves when it took over in 2013 and the situation is the same four and half years later. In Minister of State for Finance views, the government would leave the foreign currency reserves, currently not more than $11.8 billion, at a comfortable level for its successor. The minister has failed to mention the multiplication of the loans from $45 billion to $90 billion in four and half years. His statement could be regarded as a smug glow of self-congratulation and self-complacency but the idea will plunge the nation into financial crisis in the coming year.
The widening current account deficits are posing severe challenges to the economy and the government would have no option, but to buy dollars from the world financial institutions. The speed with which the government plans to take commercial loans from international financial institutions and friendly countries, no one would be able to stop debt servicing from becoming a snowball. The State Bank reserves could be propped up with borrowed money, but it would pose serious risks to the economy in the days to come. Reports suggest the government has already obtained $1.7 billion from friendly countries as part of the plan to keep the reserves at comfortable level. The government is seeking more commercial loans with high markup rate, drifting the country toward further chaos. The panacea to economic and financial woes lies in the development of industrial and agriculture sectors. The two sectors have the potentials to push the country into the first world economies. It is easy to take loans but difficult to pay back along with interests. Due to difference in export and import, the current account deficit has already reached $10.8 billion, and concentrating on acquiring more loans will add insult to injury. This government should not leave behind the legacy of corruption and mismanagement.
