Every stakeholder in the country’s economy seems to be up in arms. It has been almost a year now since the PTI government took the reins of the country, and the time since then can be summed up in one word, turmoil. From taking too long to negotiate a loan package with the International Monetary Fund, to eventually falling to its knees and agreeing to every single condition put forth by the Fund, regardless of what toll those conditions would put on the people of the country, this government has reached heights of cruelty and ineptitude that are simply unprecedented.
As we speak, traders across the country are on a shutter down strike, refusing to open up their shops, putting their livelihoods in jeopardy, only and only because they have been pushed against the wall and have been left with no other choice but to take the most extreme of measures. Estimates have it that the country is losing 25 billion every day as a result of this strike. The fact that so many associations and bodies of traders came together is itself a sign of how panicked they all are. Uncontrollable inflation and ever-increasing interest rates do not make a positive investment environment. The government did not for once consider the terrible impact these inflationary measures were going to have on the poorest of the poor in Pakistan. Energy costs are up, fuel prices are up, prices of staples are up; where is a normal Pakistani supposed to go for relief?
Separately, the FBR has set for itself an idiotically high target of revenue for the year ahead. The writing is on the wall for all to see, it is going to be the already taxed who will have to bear the brunt of this misjudgement. If the government continues to clash head on with traders and industrialists in the country, the result of these strikes will inevitably be a shortage in supply leading to yet more inflation. Every chamber in the country and every legitimate body that represents entrepreneurs in the country have cautioned the government against such an aggressive approach and have advised that the state needs to be softer with others. But every passing day we see the FBR chairman going city to city essentially saying he knows better than everyone else and he does not want to bother listening to those who aren’t willing to play ball with him. Only a few days ago the All Pakistan Textile Mill Association reiterated that with the high interest rates in the country and the increased tax burden, the industry was slowly but surely grinding to halt in the country. That may explain why unemployment has started going up across provinces, as more and more industries shut down, either for a few days to lodge their protest, or permanently because it is just no longer feasibly to be in business. Either way, it is the country that continues to lose because of this government’s lack of clarity when it comes to running the economic affairs of the state. This government has forced the cost of production in this country to skyrocket by increasing energy costs, devaluing the Rupee by almost 40% and increasing the interest rate so high that small and medium enterprises can no longer borrow to expand or even operate at their existing scale of business.
This government has forced the cost of production in this country to skyrocket by increasing energy costs, devaluing the Rupee by almost 40% and increasing the interest rate so high that small and medium enterprises can no longer borrow to expand or even operate at their existing scale of business
The government seems to have outsourced the economy to the IMF, and it is clearly obvious that the IMF is not in the mood to take any prisoners this time around. But what options do we have now? What the country needs is to push back, wherever legally possible, against the hit job that this government is doing on the economy. From raising their voices in parliament, to providing guidance and leadership to the masses in helping them vent their frustrations on the streets via exercising their constitutional right of protest, it is now essential for the elected leaders of the opposition party to provide the people with an alternate vision and plan for how to run the affairs of the country. It is the people who can bring about true democratic change in this country, a fact that remains unchanged even today. What we need to do is focus that energy and do what we entered politics to do in the first place, give all we have for the betterment of the people we represent.
The writer is a Member of the National Assembly