Sir: Going by the current economic indicators, in the near future, Pakistan will be faced with a serious economic problem. This might be caused due to a number of reasons, but the major one is the fast depletion of foreign-exchange reserves due to the unbridled import bill and unsatisfactory exports, which, coupled with the rising US Dollar value against the Pakistani Rupee, might trigger a looming balance of payment crises that could compel Pakistan to go to the International Monetary Fund (IMF) for a quick bail out, once again.
Undoubtedly, it was our economic mismanagement that eventually led us to this pernicious dilemma. What is more worrisome is that Pakistan is already over-stretched due to its huge external debt-servicing. According to the State bank of Pakistan (SBP), the country’s total external debt servicing stood at $2.09 billion during the first quarter (July-Sept) of 2018, and the total external debt and servicing includes $1.71 billion of principal, and $383 million of interest payment.
It will be interesting to see how the new government will tackle this precarious issue; even though there is no doubt that it will take some time before the economic situation of the country stabilizes. Hopefully pragmatic and comprehensive plans are drawn up that can lead Pakistan to a brighter future, one in which the country does not have to beg international associations to loan them money every few months.
TARIQUE AHMED ABRO
Hyderabad
Published in Daily Times, July 27th 2018.
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