The economy of Pakistan has always under performed during political as well as military governments partly because of ill-planning and ill-devised policies and partly due to incapacity of the official machinery to implement the vital decisions. The country is potentially rich in human and natural resources, with highly qualified fund managers and skilled workforce. But no one could do anything to change the lot of this nation. The business and industrial community wants friendly environment, but factually they are the tax evaders in the eyes of the government agencies. Which-hunting of investors leads to capital flight and unfriendly business policies means recession. When tough laws are made to control banking transactions, the floodgates of money laundering are turned open from all sides and when high and unrealistic import tariffs are imposed, trade of smuggled items thrives. Casualty of mismanagement is economy and principle beneficiaries of the maladministration are the corrupt elements no matter they are officials or the businessmen. The trust deficit increases with every government step and drifts away the genuine taxpayers from the government authorities. In the absence of a core policy on any sector of the economy, everything is messed up in this country.
According to newspaper reports, the All Pakistan Business Forum has expressed dismay over setting the exports target of $35 billion by 2020, which it says is much below the potentials of Pakistan’s economy. Sustainable growth could only be achieved when non-textile sectors are also facilitated. If government wants to curtail the possible increase in inflation from the beginning, it will have to take certain austerity measures. The rupee is already in dangerous zone as it is losing its worth against dollar with every passing day. Increase in dollar rate means the country will have to pay more on import of goods and it will shake the dynamics of the country’s economy. The government has apparently only one option and that is to enter another loan programme with the International Monetary Fund. But the loans are increasingly becoming part of the problem than the not part of the solution. The monster of debt servicing is round the corner at a time when the government struggling to maintain foreign currency reserves. Why the government has failed to launch business simulation drive to deal with economic mess is a million dollar question. Unless prudent policies are devised and the government shuns lavish spending, it will be difficult for the country to achieve cherished goal of prosperity.
