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Want of economic stability

Want of economic stability

The economic stability is elusive in Pakistan as reports from national and international organizations are filled with controversies and disparities. The economy should be immune to political implications as policies are devised and implemented after thorough deliberations in many organs of the government. In Pakistan, policies are devised, revised and implemented without any apparent reviews, and the result proves a zero sum game at the end. Political stability is always taken as prerequisite for economic growth, but contribution of many other factors could not be ignored. In case of Pakistan the economy is under pressure due to energy crisis, regional instability and lack of vision on the part of the government functionaries. The policies in the country are operated on the hackneyed path of colonial era and end in smoke. Imprudent policies through ordinances have disfigured the shape of tax system and all other related fields of business and economy. The industrial sector is facing slump and exports are falling. As a result, the trade deficit have crossed $23 billion during the last fiscal year. The government is left with only one option: that is to take loans from international financial organizations.

According to the newspaper reports, the government is coming up with a new loan programme with International Finance Corporation of the World Bank Group for $500 million in the name of Pakistan Development Fund Limited. The company was set up with Saudi contribution of $1.5 billion after the government offered it 20 percent equity stake. That is short term measure but long term effects. A process of negotiations between IFC and the Finance Ministry has been going on for the last six months without taking parliament into the confidence. The future generation are made hostage to the funding agencies and the nation is listening to rosy words about improvement in the economy. In this case, a complex arrangement is being made with 20 percent stakes of Pakistan, 40 percent stakes of the company and 40 percent stakes would be offered to other stakeholders which could be Chinese or Qatari financial institutions. It is yet to be seen who will have dominance in administrative affairs of the company and what change it will bring to the economy to ensure financial stability in the country. The growing volume of loans and growing burden of liabilities in a situation where major industrial and business concern are incurring billions of dollars annual losses, how economy will show any sign of improvement is a million dollar question.

One can only pray for the nation and the economy as the political leadership has miserably failed to claim success in any discipline of the administrative, industrial or financial sectors.