Daily Times

A surprising turn in the outlook of Pakistan’s finances by major credit rating rating agencies as a pleasant result of the staff-level agreement reached with the IMF would be nothing short of a manna from the heaven for this government increasingly overwhelmed by political fires.

It was only in February that Moody’s had decided the country needed to do a lot more to rise above the “speculative grade” economies. Although a reluctant call for celebration is immediately followed by a detailed analysis of the government shortcomings that contribute to the fragility of its economic recovery, political entities are perpetually looking for such wins – no matter how small – to send out a reassuring message.

Both Moody’s and Fitch believe the government would have to show much more muscle in terms of making the holy cows accountable for what they owe to the treasury, pleading for extra caution in terms of global instability or any extreme climatic event. As has been for the past three years, political chaos remains the elephant in the room, which neither the government nor the opposition wishes to address.

It did not take long after the February 8 elections for international commentators to cast doubt on the capacity of a coalition government to tackle the everyday struggles of the common man and convince them to (for the zillionth time) bleed at the altar. May it be the removal of subsidies or hikes in tariffs designed by the Fund to overcome the trade deficit, people struggling from record inflation and raging unemployment do not have it in them to sacrifice anymore.

Although the ground reality demands those at the helm of the affairs to overlook an incomplete picture of a nation’s economic health, it is far more difficult to revolutionise policies against high unemployment rates, skyrocketing inflation and rampant income inequality than to toot one’s horn over an optimistic outlook. Considering the understandable hesitation by foreign investors due to the precarious security situation and a wave of higher taxes, it remains to be seen how the government would find the magic word to add money to its empty coffers, fill millions of bellies and keep up appearances of a sustainable line of action. *