It is difficult to understand on what grounds the world rating agency, Standard and Poor’s, has improved Pakistan’s long-term credit rating from B negative (B-) to B with stable outlook. According to Finance Minister Ishaq Dar, improvement in rating is the result of the government’s strong performance in the development of the economy, better fiscal policies, and stability in external positions. Meanwhile, the Pakistan Tehrik-e-Insaf has cancelled its sit-in in Islamabad and politically charged atmosphere is returning to normal. The businessmen have also taken a sigh of relief as they were facing Rs 65 billion losses of revenues due to possible lock down of the federal capital.The PTI of Imran Khan was pressing the ruling elite to clear its position on offshore companies. Earlier, Dar signed an amended convention on Mutual Administrative Assistance in Tax Matters, but the country has yet to provide the body the dates for deposit of instrument of ratification, acceptance or approval or the date of entry into force. Billions of dollars black money owned by corrupt Pakistanis is stashed in Switzerland and other parts of the world, but the government is unable to bring the national wealth back. Pressure mounted on the government after the names of many Pakistanis surfaced in Panama leaks, but the government failed to respond to the issue in time. The government is now floating a bill to bind companies and their directors to reveal the details of their foreign investments.
In principle, Khan is right to pressure the government to clear its position on the corruption matters, but is wrong as far as the timing of the protest was concerned. The government action on Panama leaks remained slow and it is now difficult to repair the damage by taking half-hearted measures. As a matter of fact, the government’s writ in administrative, economic and financial affairs is weak. The powerful individuals are free to violate the law in their favour and walk free. The political elite is immune to any government measures whether it relates to avoidance of taxes or any other matter. At a time the enemy has started incessant firing on the line of control, the showdown was not in the national interest. The new rating issued by the Standard and Poor’s is being seen with suspicion as if the government has managed to get it from the agency to distract the people’s attention from the Islamabad protest.
The unfortunate part of the situation is that both sides are wrong. There is no point to create political instability in the country as there are hundreds of ways the opposition can use to convince the people that the government economic policies are wrong. However, it is hoped that sanity and reasons would prevail for the cause of peace and stability in the country. The government and opposition should show maximum restraint and should not put the country into crisis.
