Finance Minister Muhammad Aurangzeb took great pride in announcing how Pakistan has managed to get another year rollover in its debt commitments to China, Saudi Arabia and the UAE.
Expectedly so, because these countries have, in one form or another, stood in Pakistan’s corner on every such occasion. However, the fact that we have averted a doomsday scenario, for now, does not mean this breathing space can be used to dismiss the need to look beyond temporary financial relief and focus on sustainable strategies for economic growth.
Pakistan’s recent efforts to secure debt extension assurances as it inches closer to another IMF programme are bound to be celebrated by the ruling elite as a feel-good achievement. Not too long ago, another minister wearing the same hat had expected his party and the country to hold pompoms for him after his efforts had made the Fund loosen its drawstrings. Sadly, nothing much could come out of that heroic victory then. If Mr Aurangzeb doesn’t take heed of the past disasters, his tenure would follow suit. We can only hope that the ongoing efforts to bring international creditors back to the negotiating table will pay off. It is high time for the Sharif administration to prioritize long-term financial stability to avoid falling into a cycle of perpetual debt and uncertainty.
Loans, even if deemed necessary for the survival of fragile economies, can still not be counted as the only way forward. As in the past, this continuous reliance on quick fixes, without investing in building industrial resilience can create a false sense of security and fail to address underlying issues that contribute to financial instability.
It is, of course, easier to blame the technocrat than to take responsibility for decades-old misgivings. The critics have somehow always found a way to find fault with the finance minister – Asad Umar rubbed IMF the wrong way, Shaukat Tareen lacked clarity and Miftah Ismail was far too apologetic – whenever asked for a comment on a series of unpopular decisions to woo the Fund.
What they, and all of us, conveniently forget is how the entire setup seems placated with the default setting and does not wish to head towards sustainable practices. Tough decisions that can build the export industry, cut down our reliance on expensive imports and establish an investor-friendly environment are easier discussed on talk shows or social media than implemented in the assembly. *