Give Govt time to work

January 1, 2019

Ours is an economy based on lies and deceit of two previous governments. Let the incumbent government work, four months down the road is too short for any real report card. Even two years ago it was apparent that the economic growth was not on solid foundations. It was entirely based on borrowed funds. It was based on the largesse of western tax payers. Low oil prices helped us stretch that fundamentally unsound growth for as long as we did. Otherwise there was nothing to cheer about. Well the critics conveniently forget about loans being taken which were recorded the highest by any government. PTI inherited an economy which was based on debt. Going to IMF for a full bail out would have resulted in another pile of debt. PMLN was taking the country towards a financial disaster and every body could see that the country was being run on borrowed money. Exports dwindled, imports sky rocketed, agriculture was ignored and industrial base was wiped out because of poor policies and stupid trade agreements. Every body knows that when you set out to correct the fundamentals it is going to be painful and it will take time. People should get ready for a painful road ahead as there is no easy way out. Critics keep talking of policy direction, which we think we have had quite a bit off. What is happening today should have been predicted five years ago so blaming the new govt is unfair. When Pakistan was being praised two years ago critics kept raising serious issues about sustainability of growth induced by huge debt growth. We were living beyond means for too long postponing day of reckoning. The IMF is demanding upfront implementation of its conditionality mainly due to our leaving the USA camp and relying more and more on China and partially because of our past performance with the Fund before considering our request for funding. Government has implemented the basic and logical demands like exchange rate adjustment and interest rate hike but is reluctant to accept conditions like complete withdrawal of subsidies. Blaming this impasse on current government is just naivety. Under the situation my view is that previous two governments definitely mismanaged the economy; jury on the current government is still out. It is unfair to blame the ills of the economy onto an incumbent that has just occupied office. Even laymen knew of the horrific conditions the economy was going towards under Dar. At least the current occupier of the office is doing something realistic to cure the ills unlike the previous government which used fudged up numbers to look good. We should stop playing politics with this country and the serious issues that this country faces.

 

Media has the responsibility to educate the masses and make sure that economic opinions are expressed by experts in that field.

 

 

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