That rivers of milk and honey will finally flow across Pakistan as a wave of positive economic indicators suggest an end to our dark, dreary days would be a grand sweeping statement.
After surviving through one of the most challenging years since its existence, the country anxiously awaits its share of happy days. But while we hope and pray we experience peace and prosperity in 2024, it would be utterly fallacious to close our eyes to a long string of crises staring the finances in the face. There’s no denying the unexpected accomplishments of the caretaker setup that managed to find some semblance of economic stability.
Though fierce, no-punches-held crackdown against the black market and profiteers saw the Pakistani rupee celebrated as the best-performing currency, recovery of at least 46 billion rupees lost to electricity theft, remarkable milestones at the stock exchange and a renewed interest by the international players, all these gains can easily turnaround after just one jolt at the currency market.
The military leadership cannot stand guard in the administrative domain forever and therefore, the incumbent government, whosoever it is, needs to step forward with a fool-proof plan. Since the fundamentals have not changed and Pakistan is yet to find its salvation, remittances and export proceeds can once again decline. It is an open secret that investment avoids uncertain hotspots like plague. The country may be in the clear for now but given the past horrors of hanging from the default cliff, we are in no position to become complacent.
Any negative signal sent to the exchange market would mean yet another tsunami of inflation that is already touching the skies. If the next government succeeds in consolidating fiscal reforms that broaden the tax net and reduce indirect taxation with a firm commitment to dismantling the notion of blue-eyed sectors, glad tidings might trickle in. But (and a big, bold but) no miracle can be performed overnight. Incentivising exports, creative, cut-throat research and development with a splash of reforms in literally every sector: let’s build our finances brick by brick. *