Daily Times

Prime Minister Shahbaz Sharif and his political ally Asif Ali Zardari, were very keen to oust Imran Khan after the latter tried his best to cancel them. In his haste to oust Khan and assume office, Shahbaz Sharif took over a bankrupt nation, heading towards sovereign default. A sovereign default occurs when a country is unable to repay its debts. Wars and revolutions, mismanagement, and political corruption are among the leading causes of sovereign default. In 2022 Russia was the first country to not repay its debts, due to financial sanctions. Sri Lanka remained in the news for defaulting on its debt. Pakistan, along with El Salvador, Ghana, Egypt and Tunisia, are at high risk of default. Lebanon defaulted in 2020 and Greece in 2015. Since Greece is part of the EU, it is akin to a poor man having wealthy siblings assisting him. Greece received an astronomical €289 billion in financial assistance from the troika consisting of the EU, European Central Bank and International Monetary Fund. This enabled a return to financial normalcy. Pakistan is similarly expecting financial assistance from its wealthy cousin, Saudi Arabia.

The UAE had offered Pakistan $2 billion in exchange for minority shares in publicly listed government-owned companies. The UAE had struck a similar deal with Egypt earlier this year. These are all short-term measures as debt repayment cannot be sustained through undertaking further debt or by selling state assets. A sovereign default is hence very likely.All these defaulting countries had one thing in common, i.e, they lacked able leadership, who would practice fiscal responsibility and encourage economic growth. Sovereign default slows economic growth and bars further government borrowing from international investors for years.

If Pakistan defaults on its debt, it may turn out to be a blessing in disguise. Pakistan has become a consumer economy when it is a poor country. Extravagance was everywhere. Malls had sprung up in towns big or small, and people equated them with progress. Weddings had become insane in their grandeur. I once saw the Instagram pictures of a random Pakistani wedding shared in a Facebook group, and an American woman commented that the bride and groom were gorgeous but the wedding reminded her of traveller’s weddings.

Sovereign default slows economic growth and bars further government borrowing from international investors for years.

Travellers is a politically correct reference to a population group – formerly known as gipsies – who originate from Sindh and greater North India. Travellers have not integrated into western society, as they follow a different set of norms and mores. Education is not a priority and marriages are arranged. Travellers usually take up low-paying blue-collar professions. Despite their poverty, their weddings are totally over the top. They look like something straight out of the illustrations of a children’s fairy tale.

At first, I was offended by the American Facebook member’s comment, but then I had to concede that the observation was spot on. We are indeed on the same track. Pakistan seems like a rich country if you see social trends. Healthcare has been privatized and hospitals charge an arm and a leg. Education too is now a business, with children’s school fees exceeding the starting salary of a graduate. Eating out and ordering home delivery of food has now become a social obligation. Restaurants and eateries have mushroomed all over the country hence. When women get widowed or men become unemployed, they start a home-based food business due to the probability of success being high. Our shopping habits can be seen on social media, where every other woman is trying to sell something online. Clothing brands have taken over the socio-economic landscape. Prices of women-related consumer goods have risen astronomically.

This lifestyle is juxtaposed with heightened and overt religiosity, where everyone has something Islamic to preach. The best example of this is seen in Ramadan when abstinence is foregone for hedonism. Pakistanis eat and buy like there is no tomorrow.

Extravagant lifestyles, social apathy and entitlement, have seeped into our bones. A sovereign default may be a blessing in disguise as it can potentially set us right.

The current increase in fuel prices and the inflation-led price hikes have affected all social classes. Previously, the rising inflation was more of rhetoric, but today it has become a painful truth with frozen wages and doubling prices. The government has banned imports. Had it also banned extravagant weddings and put a cap on the prices of ready-to-wear clothing, then it would have been met with defiance. However, now there is no need for any directive from the state. Inflation will give impetus to modest living. Food shortages due to the Russian-Ukrainian war and climate change-related weather effects are an additional wake-up call. The earth does not possess infinite resources and when the human species gets out of control, the forces of nature subdue them. Pakistan should now redefine its priorities from consumerism and hedonism to responsible and conscious living.

The writer is an independent researcher, author and columnist. She can be reached at aliya1924@gmail.com