The current government seems to have no satisfactory social, political and economic policies that lead the country towards durable stability. From interminable social disasters like excessive forced marriages to lasting strict political opposition, from political downfall to the shattering economy are the result of every policy that has come to the hands of the government in the center. These unending penchants are creating numerous obstacles for the country at large. Consequently, the outcomes are only moving the country from bad to worse and from worse to the worst social, political and economic conditions.
To begin with, the halting and scorching inflation with the public in hot water is one of the most disturbing scenes. On January 8, 2020, the government launched a relief package for the utility stores. This package constituted of ten to fifteen billion rupees package to ease the burden of the public. Initially, it was announced that the package would bring about relief to the public and citizens in a number of manners. This includes relief in the oil price and other utilities. However, there have been no sufficient practical performances that would ease the citizens. Utility stores across Pakistan are selling materials for their own prices.
Furthermore, the terms of IMF (International Monetary Fund) are another cause of concern for the PTI government. The pressure from IMF debt on Pakistan has forced the government to get it paid by its citizens through taxes and high inflation. Despite the low salaries and income, the government is putting more taxes which has seriously affected the life of the lower and middle classes. Worse, they have been told to tolerate with a moto that “Don’t be afraid”.
An accountable government would always admit its faults rather than defending them. Inversely, the PTI government has forgotten its promises of bringing down the prices of commodities. To add to this, the common man has been tired of bearing high inflation, taxes, and unemployment. This has resulted in the rise of suicides, crimes and theft. Inflation is rising rapidly. Masses are unable even to buy necessary stuff for households. These all are bringing social dilemmas like that of the wheat crisis.
Moreover, the International Monetary Fund has estimated that inflation in Pakistan may escalate up to 13 percent in the coming years. However, the estimation of the government has made it clear before that the inflation has already crossed 11 percent in the month of December 2019. This makes it further clear that reaching 13 percent is not far along.
Further analysis shows that food inflation in urban areas rose by 15 pc in December on a yearly basis. In rural areas, food inflation rose to 15 percent yearly and 1.8 percent monthly basis. On the other hand, items that declined in urban areas were fresh fruit (15.64pc) and wheat (0.34). In rural areas, the items that witnessed inflation increase included tomatoes (34.4pc), onions (28.49), and fresh vegetables (10.96pc). Nonetheless having tall claims, the PTI government is yet unable to curb the interminable inflation.
The need of the hour is to give relief, jobs, security, food and shelter, low prices of daily items to the public instead of giving fake hopes. The IMF delegation has come to Pakistan to secure its loan given to Pakistan. The government is supposed to win over IMF or to renegotiate the terms and conditions. The PTI government ought to have impressive policies to make its talk over the IMF. Though reluctant, there are thousands of ways to strengthen the economy of the country in the blink of an eye.
The state of Argentina was passing through a similar economic crisis where Pakistan stands currently. The Argentinian government loaned one hundred billion dollars to IMF as compared to 6 billion dollars of Pakistan which are 12 times more. When IMF asked for the return of the loan, the Argentinian government turned down to pay the amount until or unless they got their country stabilized. The IMF could not take any hard actions against the Argentinian government.
In the final analysis, the PTI government must put it into account that the economic growth can be stronger with having strong economic relations with Saudi Arabia, UAE, and other oily and mineral-rich Muslim countries. They, (Saudi and UAE) are considered the major economic support of Pakistan. To be sure, Saudi Arabia assisted when the economy in Pakistan was in turns and twists. Pakistan and Saudi Arabia have had a closed relationship throughout the decades. It has offered generous economic assistance to Pakistan. What the government is supposed to do at this time period is to adopt bargaining economic policies that stabilize that tattering economy in Pakistan. The visit to Qatar and the role of Pakistan in the Taliban-US negotiation is one of the topmost platforms where the economic relations may become highly strengthened.
The author is interested in Pakistan and Middle East economic geography and the economy of Pakistan. He can be reached at [email protected]