Mismanaged economy


After the resignation of Governor of State Bank of Pakistan, chief economist has also resigned who was hired to make the monetary policy of the State Bank and also advise the Ministry of Finance to put the country on the road to growth and control the inflation.

What exactly were the reasons for two top professional to resign from such important high profile position perhaps will never be known to ordinary people. It is clear that they must have disagreement with the government’s economic policy and its heavy borrowing from commercial banks to meet its operational expenses which austerity is being over due.

Professional technocrats never have a free hand as the government considers its political interests and goals. It is strange that the people-elected governments have no policy to tackle.

Who can force fiscal and monetary discipline on the government? Its careless attitude towards the economic issues and reckless spending on non-productive projects and administration has ruined the country. There is no creation and innovations to put the economy on right track. Three State Bank Governors during the last three years tried to form an independent monetary policy for the country which is its prime responsibility as an autonomous state institution though it is not acceptable to the government.

Politicians think that parliament is supreme and not the constitution of Pakistan which ensures the independence of state institution. Due to lack of knowledge and moral bankruptcy of politicians, they don’t want to understand that professional and technocrats are trained to uphold their professional ethics.

They don’t like to compromise their professional integrity like politicians. Shahid Kardar is a professional chartered accountant who tried to keep the country’s commitment made with the IMF and was not prepared to print Rs 2 billion to 3 billion every day to meet government budget deficits and provide money for Benazir Income Support Scheme which is just a waste of money and not sustainable.

Why do the rich politicians not pay from their own pockets to the poorer living in their constituencies?