Daily Times

Imran khan, the man behind big promises delivered in his firmly determined voice, won the hearts of millions of Pakistanis with his resolve to build the “NAYA PAKISTAN”. Coupled with his vows to stand beside his ‘ghareeb awam’ and return their rights, denied them by corrupt politicians, earned him loud cheers when he assumed power as the prime minister. However by analyzing the current scenario it has being well said that ” Imran khan’s Naya Pakistan is as good as the old one”.

According to the latest statistics of the state bank, the policy rate has continued its upward hike, currently standing at 13.25%, resulting in the discouragement of investment and strangling the economy further. The downward trend of the currency depreciation has led to the historically high value of dollar around 160 Rs in the open market. The impact of deterioration in rupee can be directly seen through the rising inflation rates, adding to the hardships of the people. Further the rupee devaluation has made the imports costly thereby increasing the cost of production of goods since most of the raw material is imported. This has caused our already plummeting exports to be uncompetitive in the international markets. The story doesn’t end here because the rupee devaluation requires monetary tightening resulting into further increase in the interest rate thus intensifying the gloomy impact by repeating the whole cycle over again.

As for bridging the fiscal deficit, documentation of the economy is the need of the day. An economy where only 1% of the people file taxes is bound to be stuck in fiscal deficit ,if the necessary action is not taken now

The GDP growth rate has experienced a decline from 5.2% in (2017-18) to a 3.5-4% in( 2018-19).

In such times, the $ 600 billion loan from the IMF brings little relief due to the harsh conditions associated with it. According to the reports, the IMF requires a free floating exchange rate which means that the rupee will be further devalued. Similarly the state bank will not be allowed to intervene in the market under any circumstances.

Presently what remains an utter humiliation is the much boasted about economic advisory council of the prime minister, including world renowned economists. The current doomed status of the economy reflects the incompetence of the EAC. If the economy were to be left without interventions it might have performed better than its current situation.

The government’s failure to foresee that we were bound to go back to the IMF and its reluctance to actually do so has cost us immensely. The precious time lost between going back to the IMF and seeking financial help from the friendly countries is one of the major reasons of the economic doom we are experiencing today.

For the revival of the economy, what the government must focus on is to create such an environment which will boost our exports in order to plug the current account deficit and increase the foreign exchange reserves.

As for bridging the fiscal deficit, documentation of the economy is the need of the day. An economy where only 1% of the people file taxes is bound to be stuck in fiscal deficit ,if the necessary action is not taken now. No doubt that Documentation is a lengthy and hard challenge but once accomplished, will serve as an immense relief. For a man like Imran khans, prone on bringing structural reforms, documentation of the economy should have being on the top of his list.

For stabilizing the economy in this gloomy period ,we need serious effort resulting from efficient policies. And in such times what Imran khan needs to realize is the fact that the nation does not need his mere rhetoric or his empty promises rather actions and policies framing the way forward .

The writer is an economist, environmentalist, feminist, an animal rights activist and a poet.