Daily Times

“The wheel of the economy has started moving,” It was somewhat reassuring to hear Finance Minister Muhammad Aurangzaib take a brief detour from his usual stern warnings about the country’s finances nearing crisis and acknowledge the macroeconomic stability achieved in the last six months. However, he quickly reiterated his commitment to widespread privatization, emphasizing the need for the government to take on the role of a regulator rather than controlling businesses.

There are enough signs from the tea leaves to suggest that despite numerous challenges and ongoing political instability, our economy has managed to maintain a faint silver lining. Even if not everything may be in perfect order, a significant drop in the perceived risk of default (93 per cent) for a country that needs to be dragged back from the verge every now and then indicates that the government or the global institutions or perhaps, kismet are doing something right.

The battle against this economic beast required nothing short of record-high interest rates for an alarmingly prolonged period. Still, as we celebrate the incremental accumulation of foreign exchange reserves and a retreat, albeit temporary, from the spectre of default, we must ask ourselves who truly bears the brunt of these drastic measures.

Furthermore, what does this mean for 2025? The precipitous freefall might not have happened yet but can upgraded credit ratings alone navigate our ship through turbulent waters?

Much of the government’s resources and the public’s attention seem to be consumed by the opposition’s song and dance as they overlook the disastrously wrong message sent to international investors. No denying the powerful optics of stability, which might encourage our “friends” to take a chance on us but until and unless Islamabad is able to paint a convincing picture of its iron-clad determination to move towards growth, these numbers amount to nothing other than feel-good headlines. If holding on to tough economic decisions was akin to walking on fire, one can only imagine how hard the next assignment would be. Expanding the tax net while providing relief to the salaried class; broadening the export base, adding to the revenues and bringing the investor back, the to-do list goes on and on. *