As Pakistan has completed its $6.64 billion extended facility programme after receiving last tranche of around $100 billion from the International Monetary Fund, the total foreign debts have reached $73 billion mark. With signs of economic recovery fading out, rising trade deficit and declining exports, the country is braving for the crisis of debt servicing. According to experts, the rising debts and shrinking remittances are ready to foil the government attempt to keep the foreign exchange reserves to the present level. Finance Minister Ishaq Dar, despite his remarkable work to keep the economy in running mod, is part-timer. He has his alleged engagements in Dubai and elsewhere and is not fully available to his ministry. The prime minister also has busy schedule with several ministerial portfolios to his responsibility. He also has to spare time for his personal engagements in business and trade. The finance and economy are moving on the crutches of bureaucracy whether the nation likes it or not. The result of the part-time official business carried out by the men in authority is before us. Even the country has no full time foreign minister at this critical time when India has launched diplomatic offensive against Pakistan.
The government is ever ready to set a committee to look after issues and prepare reports, and time is slipping out of its hands. India has launched a full-fledged diplomatic war to isolate Pakistan in the comity of nations. The Pakistani exports are shrinking and debts are increasing, but the government is looking for further options to acquire more loans to run the country’s affairs with artificial convenience. The industry is on the verge of collapse and isolation of the country will definitely affect the overall outlook of the economy. The cost of doing business is increasing which is hindering foreign investment and the increasing cost of production is making Pakistani goods uncompetitive in international markets. The foreign exchange reserves are artificially kept at certain levels to allow imports. Once the reserves begin to decline, the country’s ability to import even raw material for its domestic industry will be a problem. The business and industry want encouragement, but the government has started withdrawing incentiveswhich will have negative repercussions at the end. Every government step seems to be bringing worse situation for the economy as the economy has been left on the mercy of the bureaucracy.
The government is beating about the bush without coming to the basics of the economy. There a limitations and exceptions, but the men in authority have to find solutions within the framework of the economy and given circumstances. Acquiring loans after loans is a bad option.
