According to a report issued by the International Monetary Fund, the economy of Pakistan could face serious challenges in coming years as foreign exchange reserves have fallen below a comfortable level, exports have been declining for the last four years and the country will have to pay a massive sum of $4.5 billion under the head of the China-Pakistan Economic Corridor. The government has so far been successfully warding off external pressures to devaluate the Pakistani rupee which if allowed could fall apart the national economy like a house of cards. The international institutions have their own vested interests and approve funds only after attaching invisible strings of their orders and dictations. This government has already completed a three year extended facility programme with the fund but no one knows how the loan amount has been spent. The so-called bailout package could have been avoided by taking austerity measures and curtailing the expenditures of the presidency, the prime minister’s house, governor houses and CM houses. It is not necessary that a poor nation should always devise poor policies. The policymakers will have to set priority areas as blindly accepting loans from international donor agencies will bring the economy to a point of no return.
It should be a matter of concern for the government that exports have been declining since it took over the powers four years ago. The government is also claiming that it has achieved financial stability, but the foreign exchange reserves are maintained on the crutches of foreign loans. The falling exports and increasing import bill has created trade deficit, again putting pressure on the foreign exchange reserves. The exports can only be increased if competitive business clime is created to produce value added goods. When foreign governments are involved in the investment, donor agencies are injecting loans into the economy and multi-national companies are taking interest in the business and trade in Pakistan, it is necessary for the government to adopt a multi-prong policy to cover all aspects of the economy. A point to ponder is that foreign investors come to Pakistan to make profits and not for granting alms and grants. Therefore, there is a need to take practical approach to deal with all situations. The China Pakistan Economic Corridor should be an asset in the long run and not another burden on the shoulders of the national economy.
