Daily Times

In the aftermath of the general elections, Bloomberg takes up the matter of the critical nature of discussions with the International Monetary Fund (IMF) regardless of the electoral outcome. The publication underlines the precarious state of external debt situation, describing it as uncertain and unstable. The country’s government faces imminent financial challenges, with several payments due in the next six months, necessitating a comprehensive and sizable long-term debt program.

With no single party securing a majority to form a government, the likelihood of a coalition government taking shape is imminent. However, Bloomberg writes that only a robust and unified government possesses the capability to effectively address the economic woes confronting Pakistan. The prospect of a multi-party government is viewed as a potential obstacle, with institutions showing limited interest. A strong government is seen as imperative not only for addressing economic issues but also for securing a much-needed bailout package.

Amidst grand claims and promises made by various parties during the elections, the spotlight now shifts to the practicalities of implementation and their impact on the country’s economy. The burden of existing debts, coupled with the need for additional loans, poses a considerable challenge for the incoming government. The cycle of borrowing to repay debts creates a perpetual financial struggle, raising pertinent questions about the sustainability of running the country on borrowed funds.

Questions are being raised on the long-term feasibility of relying on loans for sustaining the nation, asserting that true prosperity and development cannot be achieved through perpetual indebtedness. The call to transition towards self-reliance becomes increasingly evident, echoing the sentiment that the country must break free from the shackles of constant borrowing.

In its critique of the caretaker government’s approach, the article suggests that, to appease the IMF, public issues were disregarded, resulting in the acceptance of IMF demands at the expense of the people. The unprecedented occurrence of a mini-budget preceding the main budget exacerbated inflationary pressures, placing a heavy burden on the populace.

Looking ahead, we underscore the need for the incoming government to prioritize the satisfaction of the people by assembling a robust economic team. As the country is at an uncertain jucture, the challenges of debt management, economic stability, and IMF negotiations loom large, requiring strategic and decisive actions for the nation’s well-being. *