These days there is a debate going on all over the country about that what kind of new program the federal government has to reduce inflation and improve the living conditions of the common citizen, while the observers have pinned their hopes on the new finance minister who has not yet done so for?
The formula given is that we have to increase exports to earn more money.
On the other hand Prime Minister Mian Shahbaz Sharif and most of his cabinet ministers are talking about the new IMF program. Yesterday during his visit to Saudi Arabia, the Prime Minister met IMF MD Kristalina Georgieva in Riyadh. He has mentioned the new program along with taking steps to improve the country’s economy.
The important thing is that the new economic policy of the country has not yet been announced by the federal government, nor has any kind of guideline been brought out to implement it to bring the country back on track economically.
The cabinet is also issuing statements just like previous governments. Promises are being made that the economic conditions of the country will improve if the country receive the new program of the IMF.
The question that, when the country stands already seriously indebted and has to pay a huge amount to IMF in the next three years, how will it be able to improve its economy by becoming more indebted?
The answer should be given by the finance minister who has promised that he will continue to brief the nations.
Former ministers and economists are also watching the situation very closely. It has also been discussed in the Asma Jahangir conference. In that regard former Minister of State for Finance Dr. Ayesha Ghos Pasha has said that at present every Pakistani be indebted of Rs, 288,000. Pakistan has to pay 60 billion dollars to the IMF in the next three years. Ayesha Ghos Pasha said that a loan is taken to meet the budget deficit. In order to increase the income, the export should be increased.
Moreover, the former governor of State Bank Raza Baqir said that without the solution of the political issues, the economic issues cannot be resolved since 2007, our debt is increasing. All political parties and governments are responsible for the budget deficit. Reducing the deficit is beyond of any one party.
Former Governor State Bank Shahid Hafeez Kardar said that we are responsible for the stage we have reached today. We have more expenses than raising money. Our internal and external debt is 600% higher than the government’s income and we have to pay 8 billion dollars before the next IMF program.
The managing director Kristalina Georgieva said that there are two messages from the IMF during this especial world economic forum meeting. Despite the difficulties of the last few years, the growth and the economy are good, we have improved the growth estimates for this year.
She said that the performance of the advanced economies of USA is good, the performance of emerging markets like Indonesia, Malaysia and India is also good. She said that China’s performance in the first quarter was slightly better than expected, while some countries such as Pakistan are facing significant difficulties. Egypt is now better but also has difficulties.
This statement is very simple but in other words, it has once again shown us a mirror that where we stand. Our ruling parties and all former or existing economists should think about how countries such as China, India, Indonesia, Malaysia, Saudi Arabia, Bangladesh and Iran were stood thirty or forty years ago and how we had been progressed. We all know what happened to the country after that. So we don’t need much hard work for the betterment of economy but just to recall the old lesson and make a policy proper to implement on permanent basis.
As we lived in the sixties without debt, we can still survive with minor difficulties but it is important that our rulers and high officials should realize the bad conditions to come then plan better for the future because we have no short cut.
