Daily Times

Now that the government has snapped out of the early innings furore, it would be an excellent time to take a close look at the gaping realities. And what better reminder of the sordid affairs than the shrieks of the central bank? From the looks of it, Pakistan’s foreign reserves, hovering around the IMF-mandated $9 billion mark are still in the clear.

Despite a fall of $63 million, thanks to debt repayments, there’s no immediate pressure from the Fund, whose demands pertaining to the functionality of the reserves as well as the stability in the currency market are both being met. But a hand-to-mouth lifestyle can neither help the country sustain itself nor allow its masses any relief in the near future.

If today, the government is able to pay back creditors while standing on the edge of the danger zone, would those at the helm of the affairs wait for the actual catastrophic plunge itself to knock their heads together for a foolproof plan? A widening trade gap with the regional states, which has increased by an overwhelming 30 per cent this year, and the horrifying debt trap that threatens the country’s economic stability every passing day should have rattled them out of complacency a long while ago.

The depletion of foreign reserves raises serious concerns about Pakistan’s ability to meet its international financial obligations and maintain a stable economy. Against a troubling outlook, Pakistan’s escalating debt burden continues to exacerbate the country’s economic woes, leaving it trapped in a vicious cycle of borrowing.

At present, Pakistan is busy courting the IMF delegation for another loan of $7 billion while the experts foresee a similar round of deliberations with friendly countries for rollovers not because Islamabad wishes to follow a cut-through revolutionary blueprint to build industries or introduce services but in desperation to ensure debt servicing. The frenzy is becoming palpable as we speak.

On one hand, the finance ministry wishes to bow down to every demand of the creditors to lay hands on another much-needed dose of a new lifeline. However, their efforts at balancing the heated sentiments and political chaos are falling short of the required standards. Instead of handing everything on a silver platter and letting the masses bleed on the altar, the government would finally have to show a resolve to make a difference where it matters. Structural reforms and establishing transparency clearly hold great importance but the country still needs realistic policies to encourage investment and support the businesses. No state would willingly stifle its economic growth. *