It’s hurting alright
Dharna losses to the economy, as submitted by AGP Salman Butt to the Supreme Court, have been enormous. PTI and PAT may have fallen well short of boasting the kind of numbers they wanted, but their sit-ins have jammed the capital long enough to impact the economy, that too in no small way. There’s been an added debt burden of Rs228b, forex reserves have come down, and even the rupee has depreciated by 4.3 per cent. And considering depreciation’s second round impact on imports and foreign debt, the dubious Saudi transfer of not too long ago that supported the local currency might need a rerun. But friends are also becoming wary. The Chinese president is no longer coming. And a hefty investment program from the Middle Kingdom, too, might be in jeopardy.
Of course, it is not as if Imran Khan or Tahirul Qadri would roll up their protests because the economy is suffering. Remember, capital markets have so far fared the worst; with a stock value decline of around Rs320b in the three odd weeks of the dharnas. But Khan and Qadri have committed themselves too deeply to retreat on this pretext. Therefore, the multiple rounds of negotiations must be relied on to break the ice. That would require visible flexibility from PTI and PAT, but the core issue of electoral fraud will have to be looked into deeply for the impasse to pass. The sooner that happens, the sooner the economy will get breathing space.
At this point, it is important for all parties, including the government, to realise that economic losses can become far more critical than political concerns beyond a certain point. If business continues to suffer, and credit markets start drying, we will enter an entirely different game. Therefore, politicians bickering in parliament also bear some responsibility, since their personal ego-driven conflicts are hindering the possibility of reconciliation on a very large scale, which will set the foundation for resolving the current political stalemate. Nobody needs reminding that economic problems must not be allowed to snowball.
