In an alarming development, the State Bank of Pakistan has clocked in forex reserves at $6.1 billion; plunging to the lowest level since April 2014. Such arduous are the ground realities that one can only pray for a heavenly miracle to jump-start our engine.
With concerns mounting over our ability to meet debt obligations, Pakistan has, for the millionth time in a span of a few months, landed at the same default crossroads.
As dollars seem to be drying up, no one appears in a mood to revive the much-needed International Monetary Fund Programme, which remains suspended at the level of talks. The economic magician has probably run out of rabbits to pull from his hat, but the determination to let the old plot dictate new realities continues. Just a few weeks earlier, Mr Ishaq Dar was thundering that he did not care for the programme. Now that uncertainty has spread like wildfire, and we keep coming across yet a new reflection of how grim the situation actually is (S&P Global cut Pakistan’s long-term sovereign credit rating by one more notch), his beaming smile is nowhere to be found. But largely unaffected by what is going on right underneath their noses, the political elite remains occupied with their shenanigans.
The circus is in full swing to lay claims on the most important province, regardless of the tougher times that lay ahead for the investors, the market players and literally every man and woman walking on the street.
At this point, nothing makes sense. On the one hand, early market closures are being followed to the dot in an aggressive austerity spree, but how are ordinary traders expected to cope up with these curtailed timings and the resultant pressures of law enforcement agencies as the anchor drags them down?
From frequent bloodbaths at the stock exchange to catastrophic balance sheets in the banking sector, there is no one with even an inch of breathing space. The Dar Days have returned for sure and sadly, this time, we don’t have any miraculous resurgence to look forward to. *