The government has signed yet another agreement with the World Bank to get half a billion loan for financial and social sectors reforms. At least $300 million are earmarked to support the government efforts to promote an inclusive and transparent financial sector and raise the financial access throughout Pakistan up to 50 percent by 2020. A portion of funds will be utilized to extend private sector credit access up to the small and medium enterprises by 15 percent this fiscal year. At least $100m will go to the Benazir Income Support Programme to strengthen the social safety net systems for the poor. The government claims it will enhance their human capital and access to complementary services. The repeated negotiations of loans show how desperately the policymakers depend on the foreign assistance. Instead of creating industrial surplus, achieving financial stability and enhancing exports, the government is meeting social, industrial and budgetary requirements by obtaining loans on one pretext or the other, making the whole nation hostage to the international donor agencies.
It is not denying the fact that the BISP is a failure from the beginning as it could not bring any visible change in the lives of the poor. Rather, it has allegedly opened new vistas of corruption and mismanagement in the official hierarchy. According to experts, the disbursement of a few thousands rupees among the poor in every three months has increased the number of beggars in the country. It is very easy to provide fish to a poor everyday but it is difficult to tell him how to catch a fish. The country needs investment programmes and conducive environment to support startups and boost investment activities, but Pakistan’s position on ease of doing business is not very promising and investment climate is marred by overlapping taxes. On another note, corruption is rampant and the government has failed to curb it so far. The Supreme Court has recently dismissed some senior officials of the National Accountability Bureau who had lost their credibility in this vital department. It is yet to be seen how the government will be able to spend half a billion dollars support programme for the social sector, but apparently the end result will be another failure.
The country’s economy is growing because of the market forces of demand and supply. Every government department is, otherwise, ready to create hindrances in the way of business community. In this situation, one can only hope that the government will utilize the World Bank loan judiciously and in a transparentmanners.
