Federal Minister Muhammad Aurangzeb has once again delivered a speech full of hollow words, reassuring the people that his team is at an advanced stage of securing the seven-billion-dollar programme from the IMF, but it is only a matter of time before the actions begin to speak louder. Until now, the entire programme is up in the air as Pakistan’s loan talks have yet to find a place on the Fund’s calendar.
With every passing day, the government and its efforts to sail through this critical juncture are becoming increasingly desperate as it tries to simultaneously knock at the doors of friendly countries and international creditors, hopeful for a hail-mary pass. Delays in promised investments are adding to the headaches because tooting the horns of the economy turning the corner can help buy an artificial, short-term lifeline.
However, true credibility depends on the Sharif government addressing the pressing risks, which contrary to its claims, are very much alive and kicking. A news cycle or two of the long-drawn-out impasse and the dreaded “default” buzzword would begin to raise its ugly head on the television screens.
Like it or not, there has to be a limit to the number of bullets any country can dodge or the brief lulls before the storm it can enjoy before someone plucks up the courage to follow a more practical path. Although Pakistan’s measly finances may not be in a position to withstand financial pressures, it is high time that reliance on quick fixes and trips down the debt rabbit hole is bid farewell to, and the government worries itself with the exhaustive exercise of increasing domestic revenue and encouraging foreign investment.
These pages have repeatedly argued the need to simultaneously plan for the short-term and the long-term, the foremost of which should centre upon curtailing the government’s own expenditure. The recently-announced austerity drive does give the whiff of much-needed change in the tide, but the extent to which it is implemented is another question altogether. *
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